Asked by Mathis Vaughan on Jul 09, 2024
Verified
A statement of cash flows indicates the sources and uses of cash during a period.
Sources and Uses
A financial statement that outlines how funds are raised (sources) and spent (uses) within a business or project.
Statement of Cash Flows
A financial statement that shows the changes in a company's cash balances by categorizing cash flows into operating, investing, and financing activities.
Cash
Money in the form of currency, including coins and paper bills, used as a medium for financial transactions.
- Identify the pivotal importance of the cash flow statement in appraising a firm's financial condition and anticipating future cash inflows and outflows.
- Examine the fundamental aim and targets of the statement of cash flows.
Verified Answer
KK
Karamjeet Kaur SidhuJul 11, 2024
Final Answer :
True
Explanation :
A statement of cash flows provides information on where a company's cash came from (sources) and how it was used (uses) during a specific period of time.
Learning Objectives
- Identify the pivotal importance of the cash flow statement in appraising a firm's financial condition and anticipating future cash inflows and outflows.
- Examine the fundamental aim and targets of the statement of cash flows.