Question

fill in blanks
1.
( R )The statement that gives information about the historical changes in cash and cash
equivalents is called--------------
(cash flow statement)​

Answer 1

Explanation:

In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.

Cash flow from investing: ($1,000)

Cash flow from financing: ($2,000)

Cash flow from operations: $4,000

Net cash flow: $1,000

Answer 2

Explanation:

In financial accounting, a cash flow statement, also known as statement of cash flows,[1] is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7) is the International Accounting Standard that deals with cash flow statements.

People and groups interested in cash flow statements include:

Accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses

Potential lenders or creditors, who want a clear picture of a company's ability to repay

Potential investors, who need to judge whether the company is financially sound

Potential employees or contractors, who need to know whether the company will be able to afford compensation

Company Directors, who are responsible for the governance of the company, and are responsible for ensuring that the company does not trade while insolvent

Shareholders of the business.

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