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Why is the Statement of Cash Flows needed when most of the information in it is available from a firms comparative Balance Sheets and Income Statement?
Wiki User
∙ 10y ago
Cash flow statment is required to find out how much cash inflow and outflow is from operating, financing and investing activities company has earned and this information is not provided by any other financial statment.
Wiki User
∙ 10y ago
Wiki User
∙ 15y agono naswer!!
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Why do you think the SEC requires that balance sheets provide two years of comparative financial information and income statements provide three years of comparative financial information?
Income statements contain more data that can be extrapolate and inferred from by investors than the balance sheet does. For more accurate extrapolations, the SEC requires 1 more year of information for the income statement.
Are consolidated and comparative balance sheet same?
1. Comparative balance sheet means to use balance sheet of the competitors with base company to compare that how the company in evaluation is performing against its competitors while consolidated balance sheet is prepared when there is parent and subsidiary companies relationship exists and all the information of parent company as well as the subsidiary companies is shown within one financial statement.
Why the statement of cash flows provides useful information that goes beyond income statement and balance sheet data?
statement of cash flows provides useful information that goes beyond income statement and balance sheet data because provides information to security analysts and stockholders
Is earnings per share found on income statement or balance sheet?
Earning per share information is shown in income statement and not shown in balance sheet of business.
What information is contained in a balance sheet that is not in an income statement?
costs
Information about performance is disclosed by?
Balance & Statement of cash flows
Comparative balance sheet?
Comparative balance sheets are those in which compassion of two or more balance sheets are done in parallel.
By which information about performance is disclosed?
Balance Sheet & Statement of Cash flows
Information about performance of company is disclosed by?
balance sheet and cash flow statement
What is a comparative balance sheet?
Comparative balance sheet is that balance sheet in which comparison for more than one period is done to find out the performance of company.
A well-presented statement of cash flows can provide all of the information found in a balance sheet and income statement?
True
A well presented statement of cash flows can provide all of the information found in a balance sheet and income statement?
True
