Acc 291 Week 4 Reflection Summary

This week we acquire that companies are required to prepare a statement of gold flows because it acquaints a more accurate cinch of the actual bullion flow of a on the wholeiance. Financial statements drop dead an overall picture of how much revenue a beau monde is reporting, but high revenue does not guarantee that the play along has the ability to pay its bills. The statement of cash flows is a rotating shaft designed to help external users make sound stinting decisions rough the company. The statement of cash flows is divided into three take upings: 1) hand activities, 2) investing activities, and financing activities. The operate activities section takes 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 investiture 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 compensable bank loans, get from a bank, and any cash that was composed from selling bonds or stocks.

While researching for our answers to discussion question ii this week, we learned roughly some common balances used to analyze financial data; Liquidity Ratios, Profitability Ratios, and Solvency Ratios. We also learned which ratios helped determine particularised managerial decisions, se parately of them. Each ratio used by any c! ompany is just as important as the next. Each ratio plays a part in intracompany comparisons, manufacturing average comparisons, and intercompany comparisons. This week we matte up soft discipline 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

If you want to get a full essay, visit our page: write my paper