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How do accountants and financial managers differ in their use of financial information? Why is cash...

How do accountants and financial managers differ in their use of financial information? Why is cash flow more significant to a financial manager than it is to an accountant?

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The accountant uses financial information to locate the past data i.e the past transactions of the company.

Whereas financial manager uses financial information for projecting the future financial data using the past data.

For an Accountant the Accrual principal matters, Not the actual cash inflow or Outflow.

Whereas for a financial manager actual cash inflow or outflow matters, he will be looking at the cash flow statement for it.

Actual cash flow data is important for estimating working capital needs and management, liquidity management and Assets management.

Which are very crucial for the smooth functioning of the business.

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