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a. Differences between net income and associated cash
receipts and disbursements.
b. An enterprise’s ability to generate future positive net
cash flows.
c. The cash receipts and cash disbursements of an
enterprise during a period.
d. An enterprise’s ability to meet cash operating
needs.
The most important purpose of cash flow statement is presenting cash flows during the accounting period classified by operating, investing and financing activities (cash flow statement is a cash basis report and gives information about cash generated by the company, crucial to ensure liquidity).
Cash generated from operating, investing and financing activities of a company during a specific period usually a year.
Cash flow statement provide information about receipt and use of cash from operating, investing and financing activities for a period of time.
c. The cash receipts and cash disbursements of an
enterprise during a period.
this is the
The primary purpose
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