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Social ScienceDescribe the usefulness and format of the statement of cash flows.
Expert Answer
Statement of cash flows:
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Describe the usefulness of statement of cash flows.
The statement of cash flows is useful as it gives information to the users of financial statements like investors, creditors about the:
- Ability to generate future cash flows for the company.
- Ability of the company...
Business
Accounting
Financial Accounting
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