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Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?

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Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?

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Your tutorial is 348 words and explains why the cash flow statement is needed and the sections on it.

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Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?

Companies are required to prepare the Statement of Cash Flows because this statement reports the cash receipts, cash payments, and net change in cash resulting from operating, investing, and financing activities during a period. It does so in a format that reconciles the beginning and ending
cash balances.
Reporting the ...

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