Question

Financial managers focus on _____, the inflow and outflow of cash. Group of answer choices cash flows revenue streams sales revenues profit and loss patterns financial flows

Answer 1

Financial managers focus on option(a)i.e, cash flow the inflow and outflow of cash.

A payment (in a currency), notably from one central bank account to another, is referred to as a cash flow. the word "cash flow" is typically used to represent payments that are anticipated to occur in the future, are therefore unknown, and require cash flow forecasting;

To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:

• cash flow from operating operations,
• cash flow from investing activities,
• cash flow from financing activities.

Accounting professionals' financial accounts and other data are used by financial managers to make financial decisions. The inflows and outflows of cash are the main focus of financial management. They organize and track the company's financial flows to make sure there is money on hand when it is required.

A financial manager's primary responsibility is to assess an organization's efficiency through effective resource allocation, acquisition, and management. It offers direction for financial planning. It aids in obtaining funding from many sources. It aids in making wise financial investments.

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