Unformatted text preview: services are provided. In an accrual system revenue does equal cash. The importance of the statement of cash flow in the financial management of an organization is because it is useful for planning financial operations in a more efficient way. Some companies may show were they are making a profit but the cash flow may be slow coming in or it may show very little or no cash flow. The statement cash flow can show where there was a profit and money was made during a certain period. The statement cash flow can also show any loses within the company....
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- Spring '10
- Generally Accepted Accounting Principles