Explain in your own words why the cash flow takes precedence over the Income Statement and Balance sheet as the primary measurement tool in financial management and analysis. 

2. If cash flow is so important why do we not submit all financial reports on a cash flow basis and avoid preparing the income statement and or the balance sheet. 

3. What is the specific value to financial management of the income statement and thee balance sheet?

Answer rating: 100% (QA)

1 Primacy of Cash Flow Cash flow is considered a superior metric in financial management because it provides a direct measure of a companys ability to ... View the full answer