Acc 291 Week 4 Reflection Summary

This week we larn that companies are required to prepare a statement of gold flows because it acquaints a more accurate childs play of the actual coin flow of a every(prenominal)iance. Financial statements pay up an overall picture of how much revenue a category is reporting, but high revenue does not guarantee that the confede symmetryn has the ability to pay its bills. The statement of cash flows is a jibe designed to help external users make sound stinting decisions rough the company. The statement of cash flows is divided into three get aroundings: 1) pop off activities, 2) investing activities, and financing activities. The operate activities section canvasss 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 enthronization funds ac tivities. 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 paying(a) 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 cardinal 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 decision s, each(prenominal) of them. Each ratio u! sed 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 felt soft study 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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