Discuss the questions that are answered by the Statement of Cash Flows. The statement of cash flows is one of four financial statements (including an income statement, a balance sheet, a retained earnings statement, and a statement of cash flows) corporations use to explain the financial health of their business to employees, investors, creditors and other interested parties. It reports the cash payments, receipt and 2008). Some of the questions asked by interested parties the statement of cash flows attempts to answer are as follows: 1. How cash has flowed in and out of a company during a period? Or what are the causes of the change in the amount of cash between the beginning and the end of the accounting period? 2. Does the company enable to generate positive cash flows in future periods in order to sustain the business?
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This note was uploaded on 02/01/2012 for the course ACCT ACC560 taught by Professor Lorij.perez during the Spring '10 term at Strayer.