Question
What is a good response or opinion to the information below? The statement of cash flows provides information about a company's operating, financing, and investing
What is a good response or opinion to the information below?
The statement of cash flows provides information about a company's operating, financing, and investing activities. The text mentions ", Useful as they are, none of these statements presents a detailed summary of all the cash inflows and outflows, or the sources and uses of cash during the period. To fill this need, the FASB requires the statement of cash flows (also called the cash flow statement)." The main purpose of the statement of cash flows is to provide information about a company's cash receipts and cash payments in a period. Reporting a company's increase and decrease in cash helps investors determine its ability to pay dividends and interest. Cash receipts and cash payments are classified into three categories known as operating, investing, and financing activities. Operating activities are transactions and that determine net of income (revenue and expenses). Investing activities are transactions that affect long term assets such as the investing or disposing of; loans, property plant & equipment, and intangibles. Financing activities is cash that is either paid to or received from creditors and owners which includes stock sales, stock repurchases, and dividend payments
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