Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. many small business owners focus on the cash balan

Many small business owners focus on the cash balance in their bank accounts and may not use...

60.1K

Verified Solution

Question

Accounting

Manysmall business owners focus on the cash balance in their bankaccounts and may not use the statement of cash flows to analyze howtheir businesses are generating or using cash. Discuss what onepiece of information is found on the statement of cash flows thatis just as important as the bank balance (or more so) for thepurpose of understanding the financial position of acompany.

Answer & Explanation Solved by verified expert
4.1 Ratings (721 Votes)
Bank book and Cashflow Statement All the cash transactions wheather it is a cash receipt or a cash payment are recorded in the bank book The balance of the bank book should be debit otherwise it can be said that the organisation has an issue with its liquidity even its existence can be in danger due to lack of cash Now the purpose of the cash book is to record all the cash transactions of an organisation and to give the balance of cash in the bank account On the other hand the Cash flow statement supply the information regarding the cash inflows and outflows from different activities Any organisation has three activities which are Operating activities Investing activities and Financing activities It can be    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the following information for Evenflow Power Co., Debt: 2,500 bonds that each year pay 8...

Finance
Q

Imagine that you are assigned in a road way project and you found out that the...

Civil Engineering
Q

College has not been easy for you, but you made it through this far and should...

General Management
Q

Answer parts a through c about the Mayan numeration system a The symbol represents the...

Algebra
Q

Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Green Lawn...

Accounting
Q

Prepare revised income statements for each product, assuming a 20 \begin{tabular}{|l|l|} \hline Req A Req...

Accounting
Q

Fuget Sound Divers provides diving services, such as underwater ship repairs, to Its clients. The...

Accounting
Q

Mortgage interest is fully deductible on which of the following loans? Primary mortgage for a...

Accounting
Q

Premium Amortization On the first day of the fiscal year, a company issues a $8,300,000,...

Accounting
Q

Soledad Corporation had $22,000 of raw materials on hand on December 1. During the month,...

Accounting
Q

i always like the answer part a part b ...

Accounting
Q

Michaela owns a principal residence in Georgia, a townhouse in San Francisco, and a yacht...

Accounting