Discuss the merit of statement focusing cash flows


Discussion:

Required three question done with in three hours each question required 150-200 word's total word require all thre question is:450-600 word's Deliver date today in three hours

Consider the following scenario:

The senior management of a manufacturing company decided to overhaul its approach to managerial performance evaluation. Paul Tyler, manager in charge of production, is informed that as a result of the new policy he will be held 'responsible only for controllable costs, i.e. the direct costs of production'. Tyler is upset at this decision by senior management.

In 150-200 words, explain whose position would you support as a fellow manager

'A statement of cash flows is of limited use as a business needs to know if it will have sufficient cash to support its planned future activities.'

In 150-200 words, discuss the merit of the above statement focusing on both the purpose and limitations of a statement of cash flows.

'When one examines the distinctive and different functions of financial and management accounting, it is obvious that to maximise the usefulness of the information derived, two systems of accounting are necessary. It does not matter how large or small the entity is, it is just common sense that one system cannot do the job.'

In 150-200 words, evaluate the above assertion.

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Accounting Basics: Discuss the merit of statement focusing cash flows
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