Answer:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
4. How does a company receives its cash?
Step-by-step explanation:
The Cashflow statement deals with the cash transactions of the company with a view to know how actual cash moves through the company. As a result, it can answer questions related to the cash transactions of the company.
This includes:
- Why there were changes in the cash account because it shows what activities brought in cash and which took cash.
- Where the company spends its cash because those entries will be shown.
- Where the company gets its cash as well.