Executive Summaries of Article Essay Example | Topics and Well Written Essays - 500 words

Executive Summaries of Article - Essay ExampleItems that have to be shown in investing action argon shown as operating activity. Moreover, when such items are rectified for classification, the re-statement of the figures is not do (Daniel, Susan, & Dana, 2007).Controls should be so efficient that they are capturing the correct classification of the items each year. Such misclassifications mislead the users of the statement of specie flows. Secondly, when classifications are done, they should be re-stated as per the Generally Accepted Accounting Principles. Since, this re-statement is not being done, the ratio of current eld and that of comparatives are also being distorted. Such inconsistency in the ratios affects the decision making of the investors.1. Untrained lag There is untrained staff, which is not equal to(p) of preparing Ha cash flow. The staff is not technically give-up the ghost due to lack of knowledge and training. Many a times the staff is not even capable of adj usting the profit for non-cash items. Qualified and experienced staff should be hired to remove these errors.2. Lack of Adequate review It is observed that the senior management does not appropriately review the statement of cash flows. There are some complex items in the cash flow, which come in the form of balancing figures such as taxes paid. These figures are difficult to be calculated. Junior staff may manipulate such figures to balance the cash flow statement. Such manipulation could be rectified at initial stage if reviews are done in detail.3. Misclassification of Balance Sheet items It is observed that the balance sheet items are not classified appropriately. The items of short-run investments such as securities, which are highly liquid in nature, are classified as a cash equivalent. Such misclassification eradicates the item from investing items in the cash flow.4. Consolidation weaknesses The consolidation process is a complex process that