Why Is the Statement of Cash Flows Useful

question 52

Essay

Why is the statement of cash flows useful?

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Definitions:

Management

The practice of organizing, planning, leading, and controlling resources and people to achieve specific goals.

Horizontal Communication

The exchange of information between individuals or groups at the same level within an organization.

Lateral

Referring to interactions or relationships that occur at the same level of hierarchy within an organization, as opposed to vertical, top-down relations.

Department Heads

Individuals responsible for overseeing specific departments within an organization, ensuring their team's performance aligns with company goals.