A STUDY ON THE IMPACT OF DEBT ON CASH FLOWS

Abstract

Most entities are bothered about the effect that debt finance may have on their cash flow and therefore wealth once used to finance their operations. Theyare particularly concerned about the advantages and disadvantages of debt finance as a method of funding projects as well as the characteristics of debt finance and comparison of debt with other sources of finance.

The information in article is entirely collected through secondary research, specifically from scholarly articles accounting and finance, various text books in accounting and finance and journals from professional bodies. The paper is mainly focused on the effect debt finance on cash flows of companies with emphasis on Zambian institutions.