regarded as more important than another.
Profit and cash can be the same thing. You can have profit on the books and not have the cash because it can be tied up in various processes. Your actual disposable income is the most important.
because it is important than cash flows
Probably because cash is fungible (mutually interchangeable and inventory is not.
The statement of cash flows is a summary of the major cash receipts and cash payments for a period. This is important to a business to help them know where cash is going out to and where it is coming from and the amounts. This gives a more detailed account of cash in a company.
What would be the probable effect on a firm's cash position of the following events? a. Rapidly rising sales b. A delay in the payment of accounts payable c. A more liberal credit policy on sales (to the firm's customers) d. Holding larger inventories
1. Why are we interested in cash flows rather than accounting profits in determining the value of an asset?
The values of assets such as plants or inventories can change elastically. Using costs instead of values for elastic assetsÊis more accurate for calculating expenses.
Cash!!!!!!!!
The advantages of cash flow forecasting are: 1.Cash flow is usually more pure. 2.Cash is a king. Once you are out of cash or you have insufficient cash to pay your interests or meet your working capital liabilities, you are bankrupt. Cash flow forecasting is very important planning tool as by using this, management can foresee that when in future they are short in cash so they can arrange enough liquidity before the situation arises as well as if they have more cash than their requirements, they can invest extra cash in short term securities and investments to earn some interest income from it.
The frequency to update an inventory is at least annually, although some organizations may require more frequent checks, such as semi-annually or quarterly, depending on the nature of the equipment and organizational policies. Regularly updating inventories helps ensure accurate tracking of equipment and aids in identifying any discrepancies or losses promptly.
i need cash free in farmville