Cash Flow Analysis
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This is a detailed explanation of how to prepare a cash flow analysis and what a cash flow analysis measures. The theory of calculating the cash flow of Spaulding Enterprises is used as an example.
From the Paper:"A cash flow analysis measures the actual intake and outflow of cash in an organization. The accrual accounting system that most large companies use to prepare their financial statements is based upon the idea that expenses should match earnings. For example, a piece of equipment may produce items that are sold over a period of time. So rather than expense the item all at once, it is depreciated over its useful life to show that the cost of each item includes part of the expense..."
Cite this Descriptive Essay:
Cash Flow Analysis (2008, December 01) Retrieved September 28, 2023, from https://www.academon.com/descriptive-essay/cash-flow-analysis-122443/
"Cash Flow Analysis" 01 December 2008. Web. 28 September. 2023. <https://www.academon.com/descriptive-essay/cash-flow-analysis-122443/>