respond to jose discussion below

The information of how cash flow and financial ratios are use to analyze the information is because they are using it with the industry and example is when a company is using this information on how to allocate its resources such as making informed decision on how many people to cut in the program as they are looking for many things to help the survivability of the company. Since if the company is using more cash than it is making it is a cause for concern and another way would be how the information on ratios to help get a sense of comparison for competitors on how much they are making and using for cash. Also investors can see the number and see where the business is trending and making way for other on the account. Since one of the main goals of organization is to create wealth not just for the investors but for the company as well to make this they need to show how they can regulate cash.

The importance of ratios is there and the ones that have the most impact would be current and quick ratio and inventory turnover as this would be a good figure to see for companies like Walmart or target on how long it takes to move the inventory and a higher number is usually better to show that movement is fast.

The way technology has changed accounting is immense to the point of creation of electronic booking apps such as QuickBooks to help small businesses owners empower themselves in what they can do for their business and how to help. These advance has helped small businesses as there were few ways to get help if you didn't study for it but this has helped more people take control of small businesses ownership.