The primary purpose of a statement of cash flows is to provide information about:

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about a company's cash inflows and outflows during a specific period. It provides details on where the company's cash is coming from (cash inflows) and where it's going (cash outflows). This information is crucial for investors and analysts to evaluate a company's liquidity and ability to meet its financial obligations. The statement of cash flows does not provide information about assets and liabilities, profitability, or working capital.

The Primary Purpose of a Statement of Cash Flows Is