Unit 3.7 - Cash Flow
What you need to know and understand:
- The difference between profit and cash flow
- Working capital
- Liquidity position
- Cash flow forecasts
- The relationship between investment, profit and cash flow
- Strategies for dealing with cash flow problems
Conceptual Understandings:
- Change in the business structure can impact a business’ financial resources
- Creativity in financial reporting can have diverse impacts in a business
- Ethical financial and accounting practices can be a form of sustainable business behavior
Questions to consider:
- Are objective facts or appeals to emotion more effective when applying for an external source of finance?
- How do our expectations and assumptions have an impact on how we read company accounts?
- What roles do reason and emotion play when analyzing financial performance?
- Are the results of some types of ratio analysis less open to interpretation than others?
- To what extent are the methods used to gain knowledge in investment appraisal “scientific”?
- What assumptions underlie the techniques used when budgeting?
TEXTBOOK unit 3.7
|
|
|
|