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Cash is as important as profit in a company because: Managing cash improves profitability Cash is one of the key measures on the income statement
- Cash is as important as profit in a company because:
- Managing cash improves profitability
- Cash is one of the key measures on the income statement
- Cash is what keeps a company running from day to day
- Cash is a measure of shareholder value
- A company has more cash today when:
- Customers pay their bills sooner
- When accounts receivable increases
- Profit increases
- Retained earnings increases
- The fundamental accounting equation that is used for the balance sheet is:
- Owners equty=cash and cash equivelents+liabilities
- Assets=liabilities + equity
- Profit=revenue+operating expenses
- Assets=cash and cash equivalents + property, plant & equipment
- Cash and profit are different because:
- Revenue is a promise to pay
- Expenses are not necessarily the bills that were paid in that month
- Cash can be used to pay for things that dont show up on the income statement
- All of the above
- None of the above
- The following items are typically included in the operations section of the cash flow statement:
- Changes in accounts receivable and inventory
- Changes in investments, property, plant, and equipment
- Changes in loans
- Changes in the dividend
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