Five ways companies can cook cash flow

By Deputy editor Tim Bennett Mar 21, 2013

Tim Bennett

Share with
friends:

Comments (4) Print this article

Most investors know that crafty company directors can boost profits using various tricks of the accounting trade. But can they do the same thing with cash flow? Tim Bennett looks at five ways a firm could dupe you into thinking its cash flows are stronger than they really are.

• Watch all of Tim's video tutorials here.

• To download Tim's videos to your mobile device via iTunes, click here.

Related videos

• What is a balance sheet?

• What is profit?
• What is a cash flow statement?

• Get all of Tim's latest video tutorials sent straight to your inbox every Thursday - sign up FREE to MoneyWeek Tutorials here .

Comments (4)

Published in Video tutorials | More articles by Tim Bennett

Share with
friends:

Related articles

Comments

Leave a comment

  • 1. Tom Roundhouse

    (21 March 2013, 03:25PM)  Complain about this comment

    Brilliant, as ever!

  • 2. mario

    (22 March 2013, 04:37PM)  Complain about this comment

    I appreciate these videos greatly. Thanks so much!

  • 3. JimW

    (24 March 2013, 07:21PM)  Complain about this comment

    One company I worked for in the 1970's issued undated invoices for goods not received yet, before stocktaking, to make there figures look better, not so easy with computers printing invoices nowadays, although I suspect not impossible.

    Very interesting video, thanks.



  • 4. Gaurav Singh

    (26 April 2013, 05:00PM)  Complain about this comment

    Hi Tim,

    But, why would companies want to show more cash to investors, and as we all know cash is subject to tax, and companies end up paying more tax for cash in hand.

Leave a comment

This will be the name displayed with your comment.

This helps us verify comments are genuine. It will not be displayed anywhere on the site and is stored confidentially.

Please keep your comment within 1,000 characters and relevant to the main topic. We encourage healthy debate, but we don't allow insults or bad language. Anything off topic or unpleasant, we'll remove. Enjoy the conversation! Thank you.

captcha To prevent spam-related comments please enter the characters shown in the 'Captcha' box to the left.

By leaving a comment you accept our terms and conditions.


>