Learn to Look at the Cash Flow
- Topics:
- Financial Statements
- Tags:
- Accounting,
- Cash Flow,
- Finance,
- Financial Accounting,
- Financial Services,
- Operational Accounting
- Source:
- Equade Internet
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Overview: If a company reports earnings of one billion dollars, does this mean they have put this amount of cash in the bank? Not necessarily. The article maintains that financial statements are based on accrual accounting, which, in an effort to best reflect the financial health of a company, takes into account non-cash items. Sometimes, however, it can be valuable to strip off all the accounting noise and look at how much actual cash a company is generating. The statement of cash flow provides us with this information. Read article for further elaboration on cash flow and cash flow statement.
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Format: HTML | Date: Jan 2003 | Pages: 1
