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How to differentiate operating use of cash from uses

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When working with small business clients, or the senior management of a company for whom you are employed, it is often difficult to communicate to non-accountants about the meaning of accrual versus cash accounting.

What are some of the account areas that you think this audience would have the most difficulty in understanding (you may use your own experience from before you understood these topics)?

How can we use a cash flow statement to explain capital costs, retirement of debt, the raising of capital?

How to differentiate operating use of cash from other uses?

Reference no: EM132992772

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