20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

statement of cash flows

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
June 3, 2021 at 2:19 pm #622947
Jiya024
Member
- Topics: 168
- Replies: 56
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!
June 4, 2021 at 9:41 am #623087
Stephen Widberg
Keymaster
- Topics: 16
- Replies: 3411
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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.