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because otherwise there would be no cash

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14y ago

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Why are companies required to prepare a statement of cash flows and what is its significance in financial reporting?

Companies are required to prepare a statement of cash flows to show how cash is generated and used in their operations. This statement is significant in financial reporting because it provides insights into a company's liquidity, operating activities, and ability to meet financial obligations.


Does gaap require statement of cash flows?

Yes


Which section is affected by the decision to use either the direct method or the indirect method to prepare the statement of cash flows?

The Operating Activities portion of the Statement of Cash Flows is affected by whether the direct or indirect method is used.


Does the statement of cash flows classifies cash receipts and payments into four categories?

i have four years of balance sheet and income statement and now want to prepare cash flow statement from assets


What is Dividends received in cash flows statement?

Dividend received is the amount received by company from investing in other companies and shows in cash flows from investing activities.


What describes the investing activities as shown in the statement of cash flows?

The Statement of Cash Flows includes three different types of cash flows:Operating,Investing, andFinancingInvesting cash flows involve investments in other companies or investments in long-lived assets. They include:Purchases of long-lived assets;Proceeds from selling long-lived assets;Purchases of investments in other companies; andProceeds from selling investments in other companies.


When analyzing the changes on a spreadsheet used to prepare a statement of cash the cash flows from operating activities generally affect?

non- current assets


What is finalization of accounts?

Finalization of accounts is to prepare financial reports along with comparision and brefing of company's financial reports include (Income Statement, Cash flows, Balance Sheet, Statement Chages in Equity, Policies and disclousers) .


What is final accountant?

Finalization of accounts is to prepare financial reports along with comparision and brefing of company's financial reports include (Income Statement, Cash flows, Balance Sheet, Statement Chages in Equity, Policies and disclousers) .


What does a statement of cash flows show?

A statement of cash flows is also called a cash flow statement. The statement of cash flows is a cash basis report that shows the inflows and outflows of cash for the operating, investing and financing resources of a business.


What does the statement of cash flows list?

No


The statement of cash flows may also be called the?

funds statement