Measuring performance by means of income and cash flows and the life-cycle theory
RIS ID
76624
Abstract
The purpose of this article is to study the life-cycle theory and investigate income and cash flow patterns during the different life-cycles of an entity as performance measures. There is a general agreement that an entity passes through four life-cycles stages. These stages in the life-cycle of an entity reflect a set of financial characteristics that leads to different information on income and cash flows. The cash flow statement supplies information about both income and cash flows. Combining the life-cycle theory with an analysis of the cash flow statement may be useful as a performance measure and how the entity is managing their flow of funds.
COinS
Publication Details
Jooste, L. 2011, 'Measuring performance by means of income and cash flows and the life-cycle theory', The Business Review Cambridge, vol. 19, no. 1, pp. 178-186.