acc560 week 9 discussion 2

acc560 week 9 discussion 2 - the companys level of...

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Discuss the ways that the Statement of Cash Flows may be useful when making business  decisions. The statement of cash flows is a useful business decision-making tool for management, investors, and creditors.  Management needs this information to maintain internal control, evaluate departmental performance, plan future  business activities, prepare budgets, and meet financial reporting requirements. For example, a cash flow statement  can be used by a company to determine its flexibility when making decisions about asset purchases, and to monitor 
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Unformatted text preview: the companys level of profitability in relation to cash availability. As for investors, the statement of cash flows can help them to assess the amounts, timing and uncertainty/predictability of future cash flows, and to evaluate the viability of investing in a company. It also can be used by creditors, such as banks or other lending companies, to judge whether the company have enough cash to repay a loan on schedule, and then decide whether to grant the company with a new loan or extend current loans....
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This note was uploaded on 02/01/2012 for the course ACCT ACC560 taught by Professor Lorij.perez during the Spring '10 term at Strayer.

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