The Meaning of the Statement of Cash Flows
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Discuss the meaning, usefulness, and clarity of the Statement of Cash Flows to specific individuals (e.g. students, future/present managers, future/present owners of companies...etc).
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Solution Summary
This is a discussion of what a statement of cash flows will mean to different individuals.
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A cash flow statement is one of the important financial statements. It provides information regarding cash inflows and outflows of the organization.
The usefulness of cash flow statement :
1) To students: They can learn about the cash inflows and outflows of the organization. It also tells them about the performance of the organization.
2) Managers: It tells about the key activities of the organization. It helps in describing the financial resources, obligations, and activities and their impact on the cash flows of an organization. Managers use this information in ...
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