Essence and features of enterprise cash flows
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 11, Issue
Abstract
The article is devoted to the study of the essence, approaches to the classification and key features of the cash flows of the enterprise. The purpose of the work is to study the essence of cash flows of the enterprise and their features from the point of view of financial management. The paper conducted a critical analysis of existing scientific and methodological approaches to the understanding of cash flows and systematized their key features. Cash flow is the proceeds and payments of cash and cash equivalents generated by its economic activities, associated with factors of time, risk and liquidity. Its key characteristics are dynamic, aggregation, complexity and synchronization. The criteria for the classification of cash flows of an enterprise are studied with the aim of structuring the whole diversity of cash flows of an enterprise for the effective organization of their management. The criteria for the classification of cash flows are follow: type of economic activity, the extent of maintenance of financial and economic ties, the direction of movement, form, currency, significance, time factor, the method of determining the volume, sufficiency, continuity of formation and movement, duration and stability of formation intervals. Principles, which the management of cash flows of the enterprise should be based on, is the reliability of information, balance, efficiency, liquidity, timeliness, maneuverability and individuality. The paper specifies the differences in cash flow from the financial result, which is the key to the coordination of financial work on managing cash flows and financial work on managing financial results to achieve the goal of financial management. The difference of cash flow from the financial result should be taken into account in the financial management and consists that the cash flow involves money, the time of payment is important for cash flow, and cash flow, in general, is slightly concerned with the determining the financial result.
Authors and Affiliations
Olha Ivanivna Kremen, Tetiana Mykhailivna Lavrentieva
Keywords
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