How does cash flow help the management in decision making
Asked by admin @ in Business Studies viewed by 334 People
How does cash flow analysis help the management in decision making ?
Asked by admin @ in Business Studies viewed by 334 People
How does cash flow analysis help the management in decision making ?
Answered by admin @
Cash flow analysis is the examination of the financial report of the cash inflows and cash outflows of the company.
It helps the management in decision making through the following ways :
1.It helps them to anticipate the future deficits in cash and hence help them to make the financing decisions beforehand.
2.It helps them to establish a solid base for requesting credit,
3.It helps the management to make the decision whether to invest the cash balances if positive in the capital market in order to generate an additional source of income.
4.Cash flow analysis helps the management in making financial decisions such as whether to add on the company's inventory or customers which needs cash.
Asked by admin @ in Computer Science viewed by 373 persons
Asked by admin @ in Business viewed by 407 persons
Asked by admin @ in History viewed by 335 persons
Asked by admin @ in Science viewed by 423 persons
Asked by admin @ in Business Studies viewed by 470 persons
Asked by admin @ in Science viewed by 281 persons
Asked by admin @ in Business Studies viewed by 303 persons
Asked by admin @ in English viewed by 282 persons
Asked by admin @ in English viewed by 359 persons
Asked by admin @ in Physics viewed by 343 persons
Asked by admin @ in Social Sciences viewed by 334 persons
Asked by admin @ in Science viewed by 334 persons
Asked by maham237 @ in Business viewed by 426 persons
Asked by maham237 @ in Business viewed by 311 persons
Asked by maham237 @ in Social Studies viewed by 324 persons
Asked by admin @ in Business Studies viewed by 8002 persons
Asked by admin @ in Business Studies viewed by 5778 persons
Asked by admin @ in Business Studies viewed by 5459 persons
Asked by admin @ in Business Studies viewed by 3115 persons
Asked by admin @ in Business Studies viewed by 3038 persons
Asked by admin @ in Business Studies viewed by 2986 persons
Asked by admin @ in Business Studies viewed by 2942 persons
Asked by admin @ in Business Studies viewed by 2769 persons
Asked by admin @ in Business Studies viewed by 2648 persons
Asked by admin @ in Business Studies viewed by 2500 persons
Asked by admin @ in Business Studies viewed by 2287 persons
Asked by admin @ in Business Studies viewed by 2202 persons
Asked by admin @ in Business Studies viewed by 2045 persons
Asked by admin @ in Business Studies viewed by 1994 persons
Asked by admin @ in Business Studies viewed by 1846 persons