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Does the cash flow statement add any further information to that provided by the balance sheet and income statement?
Wiki User
∙ 8y ago
Absolutely, the cash flow statement is useful to show the ability of a business to meet it obligations. For instance an income statement is specifically reduced by non-cash items like depreciation. Consider your car, when you buy it (assuming you pay cash for it), this results in a negative cash flow, as time goes on the value of the car decreases, but no further cash is expended.
Wiki User
∙ 8y ago
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