The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a business for a specific period of time.

Question

Quizplus · Accepted Answer

The statement of cash flows is a financial statement that shows the inflows and outflows of cash during a particular period, categorizing them into operating, investing, and financing activities. Its primary purpose is to provide information about the company's liquidity and how it manages its cash resources.

The Primary Purpose of the Statement of Cash Flows Is