These are identified as the inflow of assets or outflow of liabilities that arise from a business entity’s primary activities.
Question: These are identified as the inflow of assets or outflow of liabilities that arise from a business entity’s primary activities.
In this blog post, we will discuss the concept of operating cash flows and why they are important for business analysis. Operating cash flows are the inflow of assets or outflow of liabilities that arise from a business entity’s primary activities. These activities include producing and selling goods or services, paying salaries and wages, purchasing inventory and supplies, and so on. Operating cash flows reflect the ability of a business to generate cash from its core operations, which is essential for its survival and growth. Operating cash flows can also be used to evaluate the profitability, efficiency, and risk of a business, as well as to compare its performance with other businesses in the same industry or sector.
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