Explain why it is dangerous when analysing Balance Sheets to concentrate attention only on movements of cash
Question:
Explain why it is dangerous when analysing Balance Sheets to concentrate attention only on movements of cash balances rather than in working capital.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
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
Answered By
Owino Otieno
My proficiency as a tutor lies in my ability to understand and respond to questions, provide explanations, and offer detailed information on various topics. I can help with academic subjects such as mathematics, science, history, literature, and more. I can also provide assistance with writing, proofreading, and language learning.
I am capable of adapting to different learning styles and can present information in a clear and concise manner. I can break down complex concepts into simpler terms, provide examples and illustrations, and engage in interactive discussions to enhance the learning experience. Additionally, I can offer guidance on problem-solving strategies, critical thinking, and exam preparation.
0.00
0 Reviews
10+ Question Solved
Related Book For
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee
Question Posted:
Students also viewed these Business questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Explain why it is dangerous to open the radiator cap or an overheated automobile engine.
-
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
-
You are the manager of a fast food restaurant. Part of your job is to report to the boss at the end of the day which special is selling best. Use your vast knowledge of descriptive statistics and...
-
Corning-Howell reported taxable income in 2011 of $120 million. At December 31, 2011, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as...
-
Sharon, age 28, is a single parent who earns $30,000 annually as a secretary at a local university. She is the sole support of her son, age 3. Sharon is concerned about the financial well-being of...
-
The term emf is an acronym for electromotive force. Why is this a misnomer?
-
Analyze the marketing environment and the forces shaping eBays business over the years. Pop quiz: Name the high-tech company that got its start in someones living room, grew from zero revenue to a...
-
n 1 1. lim tantan is equal to 004-1 1+r+r2 2. 3. If the least and the largest real values of a, for which the equation z + a |2-1+21=0(z=C and i=1) has a solution, are p and q respectively, then 4(p...
-
How should the revaluation of a fixed asset be treated in a cash flow statement ? A. It should be included in the cash flow from financing activities; B. It should be included in the cash flow from...
-
Interest received by other than financial enterprises is shown in the Cash Flow Statement under : A. Operating Activities B. Investing Activities C. Financing Activities
-
Referring to Problem 1.65, how many kilograms of ice can a 3-ton refrigeration unit produce in a 24-hour period? The heat of fusion of water is 330 kJ/kg. From Problem 1.65: A manufacturer in the...
-
What are some issues or factors that can increase or decrease the likelihood of a positive treatment outcome with a family dealing with a member who has a substance use disorder? Describe one or two...
-
"Leadership and Ethics" Please respond to the following: Use the Internet to research someone you believe to be an ethical leader of a company. Focus on his or her actions of ethical leadership that...
-
Visit your local Illinois county or Illinois state health department's website. Research and analyze the morbidity, mortality, and risk of disease data for a specific population or geographical area....
-
Need an example of an organization with ethical leadership Please give a detailed and proper example of ethical leadership in an organization
-
State two example of each risks Compliance risks, Hazard risks, Control risks, Opportunity risks to happen in an warehouse, Describe the risk, explain the risk category and likelihood and impact of...
-
Outline and briefly describe the major types of short-term, intermediate, and long-term loans commercial banks offer.
-
A copper sphere of 10-mm diameter, initially at a prescribed elevated temperature T;, is quenched in a saturated (1 atm) water bath. Using the lumped capacitance method, estimate the time for the...
-
Joe is a single, self-employed individual who owns his own business. During the current year, Joe reported $200,000 gross income and $60,000 of business expenses. He also paid $30,000 in alimony to...
-
For 2017, Mario, a single individual with no dependents, receives income of $55,000 and incurs deductible expenses of $9,000. a. What is Marios taxable income assuming that the expenses are...
-
Deductible business or investment expenses must be related to a profit-motivated activity. a. What are the factors used in determining whether an activity is profit-motivated? b. Why are these...
-
How can HR professionals ensure that training is inclusive and accessible to all employees?
-
(a) Define the terms local error and order for an ODE formula. What is the order of each of the methods (1) and (2)? [2 marks] (b) Giving answers to 2 significant decimal digits of accuracy, compute...
-
Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Round your answers for the following questions...
Study smarter with the SolutionInn App