[amp_mcq option1=”short-term” option2=”long-term” option3=”short-term as well as long-term” option4=”None of the above” correct=”option3″]<\/p>\n
The correct answer is C. Cash flow statement is useful for financial planning, both short-term and long-term.<\/p>\n
A cash flow statement is a financial statement that shows how much cash a company has coming in and going out over a period of time. It is used to track a company’s liquidity, which is its ability to meet its short-term financial obligations.<\/p>\n
A cash flow statement can also be used to project a company’s future cash flows, which can be helpful in financial planning. For example, a company can use its cash flow statement to forecast its cash needs for the next year and make sure it has enough money on hand to meet those needs.<\/p>\n
In addition, a cash flow statement can be used to analyze a company’s financial performance. By comparing the company’s actual cash flows to its budgeted cash flows, a company can identify areas where it is overspending or underspending. This information can be used to make changes to the company’s budget or to improve its financial management.<\/p>\n
Overall, a cash flow statement is a valuable tool for financial planning, both short-term and long-term. It can be used to track a company’s liquidity, project its future cash flows, and analyze its financial performance.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”short-term” option2=”long-term” option3=”short-term as well as long-term” option4=”None of the above” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-48764","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n