ANALYSIS OF THE DYNAMIC FINANCIAL BALANCE
ANALYSIS OF THE DYNAMIC FINANCIAL BALANCE

Summary/Abstract: This analysis is an important step in examining the documents summarizing the financial situation of organizations. In the context where the mere comparison of balance sheets and income statements, even over a period of several fiscal years, can only explain the net result of the movements in the opposite direction, of the type, acquisition, and ceding of fixed assets or loans and debt collection, the approach of the financial analysis using the flow method was required, starting from the concept of flow fund, which allows determining the cash surplus generated by the activity of the organization, such as the operational cash surplus. The cash flow statement provides information on the degree to which the various activities of the company generate cash surplus or deficits.

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