- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › statement of cash flows
Dear Professor,
Can you explain the below line, especially the “financial adaptability” what is that?
Statements of cash flows provide valuable information to stakeholders on the financial adaptability of an entity.
Many thanks!
Adaptability = whether it will have enough money to cope:
1. In the short term – assessed in conjunction with liquidity ratios – e.g. inventory turnover, current ratio
2. In the long term – assessed in conjunction with solvency ratios – e.g. gearing.