Title: What is Cash Accounting? Definition of Cash Accounting, Cash Accounting Meaning - The Economic Times
Headings: Definition of 'Cash Accounting'
Finance
Definition of 'Cash Accounting'

Content: However, the level of cash flow is not an ideal metric to analyse a company when making an investment decision. A Company’s balance sheet as well as income statements should be studied carefully to come to a conclusion. Cash level might be increasing for a company because it might have sold some of its assets, but that doesn’t mean the liquidity is improving. If the company has sold off some of its assets to pay off debt then this is a negative sign and should be investigated further for more clarification. If the company is not reinvesting cash then this is also a negative sign because in that case it is not using the opportunity to diversify or build business for expansion. Read More
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