Question

Write the uses of cash flow statement.​

Answer 1

Answer:

The purpose of the cash flow statement is to show where an entities cash is being generated (cash inflows), and where its cash is being spent (cash outflows), over a specific period of time (usually quarterly and annually). It is important for analyzing the liquidity and long term solvency of a company.

Answer 2

Answer:

===>cash flow statement helps in knowing that exact figure of cash inflows and outflows from various operation of the business.

===>It helps in comparing the cash budgets of past assessments with the present to assess the future a requirements after cash.

===>It gives accurate information about the cash based transactions in the business.

Explanation:

===>cash flow statement majorly used in preparing the cash budget for future needs and help in knowing the periodical requirement of the cash in future.

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