TUGAS B.INGGRIS RINDANG.docx - Main Idea And Supporting of...

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Main Idea And Supporting of Paragraph 1. Information is the key to efficient functioning of the stock markets. Supporting : Securities get priced correctly when the relevant information about companies get incorporated into the prices. 2. Cash management, which is perceived as one of the important mechanisms of good firm’s performance, may play an important role in enhancing the positive image about the financial situation of the company. Supporting : Very positive cash balances imply that the company is solvent and can meet its short term obligation without any liquidation costs. 3. Investing activities includes every activity that is related to changes in tangible assets and more precisely long term assets (properties, plants and equipments). Supporting : That is to say, a positive cash balance resulting from this section may cause questions to take place. 4. Financing activities include any changes related to Long term debts (loans, bonds and notes payable) and stockholders equity.
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