What is the purpose of the statement of cash flows?

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What is the purpose of the statement of cash flows?

Financial Statements:

In order for users who are not involved in daily business activities to understand the financial situation of a company, they must review financial statements. These statements give detailed information about a companies net assets and profits or loss.

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The statement of cash flows gives additional details about a companies cash flow. The balance sheet only details the ending balance in the cash...

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The Statement of Cash Flows: Purpose, Format & Examples

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Chapter 2 / Lesson 4
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Learn about statements of cash flows. Discover what a cash flow statement is and see the indirect method statement of cash flows, net cash flows, and other examples.


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