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What are the three areas of the cash flow elements?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 12Q: Explain the purpose of the statement of cash flows and why this statement is needed.

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Question

What are the three areas of the cash flow elements?

Expert Solution

Step 1

Financial Statements comprise of the Balance sheet, Income statement, Cash Flow Statement, Statement of Changes in Equity, and Notes to accounts. The Cash Flow Statements shows the company’s cash revenue and expenses for a period.

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