What Is The Importance Of Cash Flow? Cash flow is the inflow and outflow of money from a business. It is necessary for daily operations, taxes, purchasing inventory, and paying employees and operating costs. Positive cash flow indicates that a company’s liquid assets are increasing. What is the importance of cash flow statement? A cash
Who Is Responsible For Managing Petty Cash? The most common accountancy approach used to manage petty cash is the ‘imprest’ system. This involves an employee being given the role of ‘custodian‘ and made responsible for managing the petty cash. The cash is usually kept in a money box within the office. Who is normally responsible
Why Is Cash Flow Important To Investors? Investors consider the cash flow statement as a valuable measure of profitability and the long-term future outlook of an entity. It can help to evaluate whether the company has enough cash to pay its expenses. In other words, a CFS reflects a company’s financial health. Is cash flow