Explain why it is dangerous when analysing Balance Sheets to concentrate attention only on movements of cash

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Explain why it is dangerous when analysing Balance Sheets to concentrate attention only on movements of cash balances rather than in working capital.

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Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015

ISBN: 9789352605569

2nd Edition

Authors: M Hanif, A Mukherjee

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Question Posted: Aug 19, 2023 07:44 AM

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Explain why it is dangerous when analysing Balance Sheets to concentrate attention only on movements of cash

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Focusing solely on cash balances when analyzing a companys balance sheet while neglecting working capital can be dangerous because it provides an incomplete picture of the companys financial health an...View the full answer

Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015

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