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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1239 |
Essay's paper body
Intent to answer how much did the firm make or lose and what is a measure of its worth? (Block, Hirt 2005).
A balance sheet is often presented alongside one for a different point in time (typically the previous year) for comparison.
One of the limitations of the balance sheet is most of the values are stated on an original cost basis, and that could be a problem when plant, equipment and inventory may now be worth two or three times the original cost or may require many times the original cost for replacement...
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The Cash Flow is often used to know the status or performance of a company and its projects, and also to see possible problems with liquidity. A business can be profitable and at the same time can fail because a lack of cash, to generate returns. Oftenly financial equipment used inputs as Rate of Return and Net Present Value into the cash flows to examine the performance of projects and business...
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