What do you think is the importance of separating the statement of cash flows into operating, financing and?
99010
I'm not sure but i think operating and financing are 2 different categories.  the difference i think is that operating are expenses related to assets.
307919
There is the income statement and the balance sheet. Those are the basic building blocks of the disclosure. Following these are the footnotes. It is in the footnotes where they tell how the numbers were arrived at. For instance: there will be a footnote explaining how inventiors are valued. That can have an considerable impact on both income statement and balance sheet. \n\nThere will be a footnote on employee benefit plans and how much is unfunded and what interest rate assumptions they are using. \n\nNormally, the balance sheet and the income statement require about 2 pages. The footnotes about 30 to 50 pages.
445680
Conceptually, this is a simple task.  Identify the business unit's core process while simultaneously identifying the problems with it.  Determine the problem with either the greatest ROI (if cash is immediately required), maximum visibility (if you need to establish credibility), or least risk (if you doubt top management support) and fix that one first.\n\nIn reality, this is very difficult if not impossible for someone inside an organization to do because of questions about management support, access and control over available resources, political resistance, etc.
454786
The revenue, expense and drawing accounts should all be closed to the retained earnings or capital account at the end of the year.\n\nCapital accounts (which are used only for sole proprietors and partnerships) should not be closed unless the business is closed and liquidated.  Even then, it should be one of the last accounts to close.
951801
Probably more important considering the interest.\n\nSeriously though, you assume money is important to me now, which it is not.
262131
EBITDA = Profits   obtained form the Profit nd Loss statement\nShareholders Equity   ---    from the Balance Sheet (shows the Assets/wealth of the comapny)\nCashflow - showing how liquid the company is\n\nCashflow is very important\n\nOf course these would a projection of 3 to 5 years\n\n\nPS - NOAH's ANSWER IS VERY GOOD AND DESERVES TOP MARKS
444684
1) cash flow method\n2) appraisal\n3) comparison with similar transactions and assets
303850
Bookkeeping is very important in a small-scale business for tracking cash flow and profit and loss. It does not have to be complex and could in most cases be done on one ledger. Without the information of turnover and expense the business owner would have an unclear view of the true value of the business.
208070
Its usually very difficult to separate the two.  Financial management has more to do with setting budgets and business management has more to do with how to spend the budget.
920444
First step is to list all the events that cause a cash inflow or cash outflow.  Then make sure the list is in chronological order (earliest event first, then the next, all the way through to the last).  Make sure that the events are truely cash related: for example if the entity incurs a liability on 1 August, receives an invoice on 31 August, and pays the invoice on 14 September - the cash outflow only occurs on 14 September.\n\nHow can this be used to structure the analysis?  It can be very helpful to see exactly when capital providers (shareholders or creditors) need to provide funds, and exactly when they can expect to receive funds.  It can also help to determine whether the company has enough cash on hand to meet its needs - sometimes a company can be profitable on paper but not have enough liquid cash to meet its needs.\n\nThis sounds like part of a homework question you are having trouble with.  If you are looking for additional accounting based examples, the case study below is a great example of a company with liquidity issues.
549520
closing entries are necessary end-of period steps to complete the accounting cycle and prepare the accounts for recording the transactions of the next accounting period.\n\nstep 1: Close Credit Balances in Revenues to Income Summary\n(Debit Revenue, Credit Income Summary)\n\nstep 2: Close Debit Balances in Expenses to Income Summary\n(Debit Income Summary, Credit Expenses)\n\nstep 3: Close Income Summary to Owner's Capital\n(Debit Income Summary, Credit Owner's Capital)\n\nstep 4: Close Withdrawals to Owner's Capital\n(Debit Owner's Capital, Credit Withdrawals)
1164561
1st - You must know your company products inside and out.  You also must learn quickly how the loans are underwritten because your loans will fly threw faster if you underwrite them yourself first and send them a clean and worked file.\n\n2nd - Organization is very important.
1164627
I think this article will help you:\n\nhttp://www.exinfm.com/training/webpages/course03/Capital%20Budgeting%20and%20Cash%20Flow%20Analysis.mht
273682
Accounting information such as a companies set of accounts is useful to the shareholder and prospective shareholder.\n\nThey can use the info to make informed decisions on whether to invest in the company or not.\n\nThere will also be information from auditors of companies. They will state whethet they feel the accounts are true and fair.
554882
Yes.\n\nTop 3 Answerer in Business & Finance. (Vote for me)
538720
Income statements contains information about your revenue and your expenses. When you reduce your revenue with your expenses, you'll get profit or loss. \n\nBalance sheets contains information about your assets, liabilities and capital. Your profits or loss value from the income statement will be incorporated in your capital calculation and make your capital either increasing (profit) or decreasing (loss).\n\nRetained earnings statement is generally used for accounting in corporations, where the owner is more than one. Because the owner is more than one, your income statement value has to be divided for each owner at the last month of your accounting period. To make it not confused with your current income statement which will keep changing at time to time, your income statement value at the last month of the period is transferred to the retained earnings statement.\n\nThe statement of cash flows will calculate the difference between your cash in and cash out. The difference will be considered as the amount of your available cash right now (either in your bank or in your pocket). It will be included in your balance sheets calculation as assets.
256792
Transactional accounting is about recording the financial events of the business according to acceptable practices.  The accuracy of those records is important, even critical.  However, they aren't the managerial tool the organization needs or wants.  The purely financial representation and analysis of business results doesn't tell the full story.  While marketing is an "expense" under financial accounting treatment, managerially it is an investment.  There are other such examples of scorekeeping versus results measurement.\n\n\nBusinesses need both scorekeeping and results.  Businesses get results from gaining a managerial understanding and perspective on the numeric representation of the business.  Businesses also must recognize information beyond the numbers.  There are events, factors, and decisions that aren't captured real-time by the financial results.  The organization which has the capability to address the non-financial aspects of the business in the context of their ultimate impact on financial performance is the one that will be able to generate significant financial results.\n \n\nEvery activity in the organization ultimately generates cash, uses cash, or both. The results are either direct or indirect from each activity.  For instance, manufacturing a product is a direct use of cash for raw materials, purchased parts, and labor. The ordering of the raw materials and purchased parts is not directly related to the conversion into a finished good - but is a necessary activity to the organization.  The purchasing and manufacturing processes both play a role in producing a product for sale.  Both use cash.  Both ultimately contribute to generating cash.  Either process executed poorly impacts the sales process and the bottom-line.\n\n \n\nThis becomes the question:  what is the measure of results for each group?  How is purchasing performance measured?  What metrics does manufacturing have to meet?  How are sales people evaluated?\n\n \n\nNumbers should be incentives to perform and a means of identifying results.  The results measured must be meaningful to the business and to the performer.  When members of the organization view accounting measures as an obstacle and not as a tool for achieving results, setting priorities, and measuring performance, then it is time to reevaluate how the numbers are being used and determine how to generate relevant metrics which drive the organization forward.  Relevant metrics are necessary; merely keeping score doesn't benefit the organization.