Cash Flow Statements: Are They Important In Business Simulations?

Authors

  • Kenneth R. Goosen

Abstract

"The purpose of this paper is to address three fundamental questions: I. Should business game participants be expected to have the skill and knowledge to prepare the cash flow statement, even after completing courses in accounting and finance? 2. Is the expression, “cash flow statement” ambiguous in meaning? 3. Does the preparation of the cash flow statement improve the quality of simulation decision-making? In accounting courses, two types of cash flow statements are presented: The historical cash flow statement and the projected or pro forma cash flow statement. When students reach senior status and are taking their capstone courses, a common complaint is that they do not understand or have the ability to prepare cash flow statements. "

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Published

1998-03-06