Which Main Categories In Financial Reporting Of Other Than General Information Are Useful In Making Investment And Credit Decisions?
Which main categories in financial reporting of other than general information are useful in making investment and credit decisions?
Answers
The cashflow statement is very important from the point of view of investors and creditors. The cashflow statement consists of three portions,i.e
1. Operating cashflow
2. Financing cashflow
3. Investing cashflow
The already existing shareholders can get the info regarding the performance of a business by looking at its operational cashflow
The creditors can have a fair idea about the credibility of the business by studying its financing cashflow
The investors might like to review all three cashflows but the investing cashflows show a clear picture of company's investments.
answered 12 months ago
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