enumerate the advantages and disadvantage of cash flow
Share
enumerate the advantages and disadvantage of cash flow
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Answer:
Advantages of a Cash Flow Statement:
Since Cash Flow Statement presents the cash position of a firm at the time of making payment it directly helps to verify the liquidity position, the same is applicable for profitability. Cash Flow Statement also helps to verify the capital cash balance of businesses.
What are the disadvantages of cash flow?
Limited Information. ... They use this information to fill in their best estimate. However, their estimate can often prove to be wrong, giving an inaccurate picture of future cash flows. Relying on rough estimates thus is a major disadvantage of the cash flow forecast.