Question

What is the primary purpose of the Cash Flow Statement?

a.

To list cash receipts and payments

b.

To summarize the firm's major activities

c.

To analyze the profitability of an entity

d.

To report net assets of the organization

Posted under IC 89 Management Accounting

Answer: (a).To list cash receipts and payments Explanation:The Cash Flow Statement reports cash receipts and payments classified according to the firm's major activities, providing a summary of cash inflow and outflow.

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Q. What is the primary purpose of the Cash Flow Statement?
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