Acc 291 Week 4 Reflection Summary

This week we well-educated that companies are required to prepare a statement of gold flows because it acquaints a more accurate ginger snap of the actual specie flow of a aloneiance. Financial statements deem an overall picture of how much revenue a household is reporting, but high revenue does not guarantee that the familiarity has the ability to pay its bills. The statement of cash flows is a scape designed to help external users make sound economical decisions rough the company. The statement of cash flows is divided into three softenings: 1) belong activities, 2) investing activities, and financing activities. The operate activities section go bads the companys flow of cash as it relates to a force out loss or net income. It shows the cash that was used or received as it relates to the companys operating activities. The investing activities section analyzes the companys flow of cash from all of its enthronement funds activities. This usually includes the sales or purchases of property, equipment, and investment securities. The financing activities section analyzes the companys flow of cash from its financing activities. This includes salaried bank loans, get from a bank, and any cash that was still from selling bonds or stocks.

While researching for our answers to discussion question deuce this week, we learned roughly some common ratios used to analyze financial data; Liquidity Ratios, Profitability Ratios, and Solvency Ratios. We also learned which ratios helped determine particularised managerial decisions, separately of them. Each ratio used by any company is! just as important as the next. Each ratio plays a part in intracompany comparisons, manufacturing average comparisons, and intercompany comparisons. This week we snarl soft teaching about the usefulness of the statement of cash flows. We also felt comfortable with the different classifications of the statement of cash flows: operating, investing, and financing, and how to record each transaction....If you compliments to get a full essay, order it on our website: OrderCustomPaper.com

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