While the statement of cash flows is presently required along with the accrual statements,taking a balanced view,it would be sufficient to meet the accountability needs of general purpose financial statement users on its own.

Question

Quizplus · Accepted Answer

The statement of cash flows provides important information about cash inflows and outflows, but alone it may not provide enough information for users to fully understand a company's financial performance and health. The accrual statements, such as the income statement and balance sheet, provide complementary information about revenues, expenses, assets, and liabilities that help users make informed decisions. Therefore, a balanced view would suggest that both the cash flow statement and accrual statements are necessary to meet the accountability needs of general purpose financial statement users.

While the Statement of Cash Flows Is Presently Required Along