Question

Some might argue that the statement of cash flows is an optional financial statement and does...

Some might argue that the statement of cash flows is an optional financial statement and does not provide critical information needed for a firm or investor to succeed. Do you agree with this statement? Justify your answer.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

No, I don't agree because income statement can fluctuate with different accounting practices but cash flow statements gives actual picture of receipts and cash outflow. The cash flow statements provides information on cash flow from operation which helps to understand operational efficiency. Cash flow statement provides the liquidity position of company which helps its capability to pay out its short term debt.

Please Discuss in case of Doubt

Best of Luck. God Bless
Please Rate Well

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Some individuals argue that Sarbanes-Oxley is ineffective and of limited use in solving the problems that...
Some individuals argue that Sarbanes-Oxley is ineffective and of limited use in solving the problems that lead to poor financial reporting quality. Do you agree with this statement or do you think SOX is effective and was necessary? Provide your reasoning.
True / False ____1 The Statement of Cash Flows is an optional disclosure for a set...
True / False ____1 The Statement of Cash Flows is an optional disclosure for a set of financial statements. ____2 The first step in preparing the Statement of Cash Flows is to determine the change in the long-term assets.. ____3 A statement of cash flows prepared by the indirect method will disclose the cash flows from specific operating activities, such as cash received from customers. ____4 Convertible bonds provide for the conversion of the interest rate being paid into a...
How does the Statement of Cash Flows supplement the Statement of Financial Position?
How does the Statement of Cash Flows supplement the Statement of Financial Position?
Of the four required financial statements, where does the Statement of Cash Flows stand in order...
Of the four required financial statements, where does the Statement of Cash Flows stand in order of importance, most important, least important or somewhere in between? Give supporting arguments for your opinion.
Rank the financial statements (Statement of Activities, Statement of Financial Position, Statement of Cash Flows, and...
Rank the financial statements (Statement of Activities, Statement of Financial Position, Statement of Cash Flows, and Statement of Functional Expenses) in order of benefit to an administrator. Explain your reason for the order
STATEMENT OF CASH FLOWS You have just been hired as a financial analyst for Barrington Industries....
STATEMENT OF CASH FLOWS You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million...
STATEMENT OF CASH FLOWS You have just been hired as a financial analyst for Barrington Industries....
STATEMENT OF CASH FLOWS You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million...
financial statement users think that cash flows are a critical part of a business’ ability to...
financial statement users think that cash flows are a critical part of a business’ ability to remain: a. profitable. b. liquid. c. solvent. d. none of the above.
What can we learn about stewardship from the Statement of Cash Flows? What insights does it...
What can we learn about stewardship from the Statement of Cash Flows? What insights does it provide that we can’t learn from the other 3 Financial Statements?
The income statement provides accrual based earnings and the cash flow statement provides cash flows from...
The income statement provides accrual based earnings and the cash flow statement provides cash flows from operations. Which of these measures of firm performance is more important to investors, auditors, and fraud investigators? Is it possible that one of these measures can provide clues about manipulation of the other? What are some red flags that could signal manipulation of income from operations or cash flows from operating activities?  
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT