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Cash Flow – Lever For Continuing Activity - In Decline Period

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  • Balaban, Cristina Lucia

    () (ASE)

Abstract

Few months ago we were witnesses to an economical decline that started in USA but having influences all over the world. Starting from that moment (October 2008), all specialists and politicians were making a similitude between this crisis and The Great Depression from 1929, the biggest crisis from the economical and commercial history. And as long as, generally talking, history is repeating times to times, this similitude seems to be real, but there are some aspects which presents how the economy may fall even if exists a strong globalization process. I took in consideration the most important aspect of decline economical period. This is represented by having “cash” – a strong treasury situation as a solution of raising companies, firms, people and economy. In this context, I’m going to purpose another way of recording those operations which are involving cash, by implementing some new accounts (in the classes 5th) for express the treasury situation for a company. Also in the end is demonstrates the cash flow and cash accounting utility for a big company from Romania.

Suggested Citation

  • Balaban, Cristina Lucia, 2009. "Cash Flow – Lever For Continuing Activity - In Decline Period," Papers 2009/74, Osterreichish-Rumanischer Akademischer Verein.
  • Handle: RePEc:ris:sphedp:2009_074
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    Keywords

    cash accounting; accruals; economic decline; recession; expansion;

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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