I’m working on a business discussion question and need an explanation to help me understand better.Please respond to david with 250 words Why is it important to record investments?The importance of recording investments is to accurately prepare financial documents to include profit and loss. Investments from a business usually secure future investments for long-term purposes when excess cash is sitting in the bank.
Therefore, cash flow is very important for any business as discussed in chapter 13, the classification of cash flows for investing activities. Cash inflow and cash outflows provide the changes needed for a business investments and secure long-term assets for the future of the business, in other words it’s the strategic reason used by a business as discussed in previous chapters.
Requirements: 250