a tool where we can determine a short-term capability of a company and their ability to pay the bills. Fundamentally, the cash flow statement focuses the flow of cash that goes in and out of businesses. Cash flow activities consist of operating, investing, and financing activities. Not only accountants, but people are also interested in dealing with cash flow statements are lenders or creditors, investors, employees or contractors. Using the cash flow statement, accountants must know whether the business…
Words 2188 - Pages 9