Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Questions - Page 27: 11

Answer

The primary purpose of the statement of cash flow is to show cash receipts and cash payments for a certain period of time.

Work Step by Step

The statement of cash flow can help users understand how cash is being used and whether there is enough cash to support operations. The statement also shows whether available cash is coming from operations or from financing.
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