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    Why statements of cash flow important to decision making

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    Explain why cash flow statements are so important to financial decision making and what these statements includes.

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    The statement of cash flows shows the inflows and outflows of cash into the business bank accounts during a period. These flows are sorted by operating (mostly related to running the business, collecting from customers and paying vendors and employees), investing (buying and selling of long term assets and investments in stocks and bonds of other firms) and ...

    Solution Summary

    This solution is 230 words and explains why the cash flow statement is the "final measure" of effectiveness of business transactions.