BUSS1030 Lecture 8: BUSS 1030 lecture 8
27 Jul 2018
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Identify some of the potential complexities that arise with statements of cash flows. useful for identifying cash flow management strengths, weaknesses and opportunities, both historically and in forecasting and planning. Cash is said to be the life blood of a business the pre-eminent business asset. Cash is important for a business to settle claims, meet expenses, buy new assets and receive returns. When businesses fail it is often as a result of their inability to find sufficient cash to settle external claims. Analysts and others watch carefully in trying to assess the ability of the business to survive and to take advantage of commercial opportunities as they arise. Accounting standard aasb 107: statement of cash flows (it is prepared after income and balance sheet) The statement explains the alteration in the cash balance as shown in the two consecutive statements of financial position. Memorise and use these account names when preparing the statement.
