Cash Flow - Ind. paper - week 5

Cash Flow - Ind. paper - week 5 - Statement of Cash Flows 1...

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Statement of Cash Flows 1 Statement of Cash Flows ACC/421 Jennifer Luttrell
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Statement of Cash Flows 2 Statement of Cash Flows In financial accounting, the statement of cash flow is a financial statement that will inform a business incoming and outgoings of all cash during a certain time frame. Cash is the means of support of any business; the statement of cash flow will give in detail the movement of cash or cash equivalents during a normal accounting cycle. Benefits of a Cash Flow Statement The statement of cash flows is a straight line of information from the income statement, the balance sheet and the owners equity all of these financials add legality and accountability to the financial statements. The use of the cash flow statement allows investors and stockholders the ability to evaluate the financial strength of a business. “Therefore, it is tremendously advantageous to use the standard method for generating the Statement of Cash Flows and provide the additional credibility to the financial information” (Basic Accounting, para. 3).
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This note was uploaded on 01/13/2011 for the course ACC 243 taught by Professor Smith during the Fall '09 term at Auckland.

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Cash Flow - Ind. paper - week 5 - Statement of Cash Flows 1...

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