What is the meaning of the term cash flow? Why is this termsubject to...

90.2K

Verified Solution

Question

Accounting

What is the meaning of the term cash flow? Why is this termsubject to confusion and misrepresentation? In addition, discussthe importance to analysis of the statement of cash flows. Identifyfactors entering into the interpretation of cash flows fromoperations.

Answer & Explanation Solved by verified expert
4.1 Ratings (538 Votes)
What is the meaning of the term cash flow Why is this term subject to confusion and misrepresentation Cash Flows refers to cash actually come into business less cash outlayoutflow from the business The Balance amount which is shown in the cash flow statement is a balance which is available with the company for immediate Purchasing Power It involves Actual cash outlay ie paid out of business but not when actually    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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingWhat is the meaning of the term cash flow? Why is this termsubject to confusion...What is the meaning of the term cash flow? Why is this termsubject to confusion and misrepresentation? In addition, discussthe importance to analysis of the statement of cash flows. Identifyfactors entering into the interpretation of cash flows fromoperations.

Other questions asked by students