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Respond to the following discussion question(s): 1. Identify the purpose of the statement of cash flows. 2. Distinguish among operating, investing and financing activities
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Respond to the following discussion question(s):

1. Identify the purpose of the statement of cash flows.

2. Distinguish among operating, investing and financing activities

User Lostpacket
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1 Answer

23 votes
23 votes

Answer:

1.

The purpose of a cash flow statement is to provide a detailed picture of what happened to a business's cash during a specified period, known as the accounting period. It demonstrates an organization's ability to operate in the short and long term, based on how much cash is flowing into and out of the business.

2.(Operating activities) include cash activities related to net income. (Investing activities) include cash activities related to noncurrent assets. (Financing activities)include cash activities related to noncurrent liabilities and owners' equity.

Step-by-step explanation:

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User Roemer
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