ACCOUNTING II (MUHASEBE II) - (İNGİLİZCE) Dersi Statement of Cash Flows soru detayı:

PAYLAŞ:

SORU:

Why are cash flows important?


CEVAP:

A successful business must get more cash than it spends to produce its goods or services. However, due to timing differences, profit and cash flows act differently. If the profit is insufficient but the cash flows are sufficient, the business can carry out its activities in the short term, but might face problems in the long term. Therefore, business must have strong cash flows as well as the net profit.