The Effect of the Statements of Operating, Investing and Financing activities Extracted from the Cash Flow Statement in assessing the liquidity, profitability and continuity of the Karkh Games City and Mosul for the Games Cities

Abstract

The research aims to highlight the importance of (liquidity and profitability) indicators derived from the cash flow statement, and their role in evaluating the continuity of the economic unit. The two researchers relied on the annual financial reports of Karkh's and Mosul's Game Cities, for a period of (2) two years from 2019-2020, and the liquidity and profitability index was applied by the method of financial ratios. The two researchers completed the practical aspect through an analytical study represented in the analysis of the cash flow statement prepared by the economic units the subject of the research represented in the "Karkh Games City and Mosul Games City", by adopting a set of liquidity and profitability ratios, to assess the financial performance and the ability to continue.                                                                          

The most prominent conclusions were the following: 1. The indicators of liquidity and profitability are derived from the cash flow statement that is better than measures obtained on an accrual basis in measuring the ability of an economic unit to continue.2. Through the results of the financial ratios (liquidity and profitability) derived from the cash flow statement, an assessment of the continuity of economic units was reached. As for the most prominent recommendations, they were as follows: 1. The necessity of the auditor when checking the cities of the games, to put a paragraph explaining the continuity of units for the next (12) months. 2. Shedding light on the use of financial indicators (liquidity and profitability) based on the cash flow statement because it illustrates the impact of cash flows on the continuity of the unit