Question

Why is looking at cash flow an important step in a good financial plan?

Answer 1

Looking at cash flow an important step in a good financial plan due to the following reasons:

1. To determine areas in business that needs scaling back on spending.
2. To monitor the amount of money being received.

What is a cash inflow?

A cash inflow can be defined as an amount of money that flows into a business firm.

What is a statement of cash flows?

A statement of cash flows is also referred to as cash flow statement and it can be defined as a financial statement which illustrate how changes in income and various account of the balance sheet affect cash and other cash equivalents.

As a general rule in business management, looking at cash flow an important step in a good financial plan due to the following reasons:

1. To determine areas in business that needs scaling back on spending.
2. To monitor the amount of money being received.

Read more on cash flows here: brainly.com/question/24299919

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