The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
In this article, we'll show you how the CFS is structured, and how you can use it when analyzing a company.
KEY TAKEAWAYS
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.
The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
The main components of the cash flow statement are cash from operating activities, cash from investing activities, and cash from financing activities.
The two methods of calculating cash flow are the direct method and the indirect method.
Answer:
decision support system.
Explanation:
A decision support system is an intelligent system that automates the organizational decision process by collecting data regarding organizational processes and logical and quantitative learning of factors that directly impact a business.
It is then configured as a very effective tool to reduce the risk inherent in the decision-making process of an expert who does not have much experience to make a decision based on their own knowledge.
Cash on hand is the most liquid asset. Money in a savings account is a popular liquid asset and is very easy to withdraw and more liquid than a loan to a business.
Answer:
Quantity variance.
Explanation:
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the Quantity variance.
For instance, if Tony needs a standard quantity of 50 pounds of iron to construct a burglary, but only used 51 pounds, then the quantity variance is 1 pound of iron.
<em>Hence, the quantity variance is simply the difference between the actual quantity of materials that should be used and the quantity of materials that was used. </em>
