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Statement Of Cash Flows Paper

Statement of Cash Flows Paper

This paper will answer question one from the end of chapter 23. The question has two parts. The first part asks, “What is the purpose of the statement of cash flows?” (Kieso, Weygant, & Warfield, 2004). The second part of the question asks, “What information does it (the statement of cash flows) provide?” (Kieso, et al., 2004). This paper will also include an explanation of why statements of cash flows are important when assessing the financial strength of an organization.
According to the text, the main purpose of for the statement of cash flows is to “provide information about an entity’s cash receipts and cash payments during a period” (Kieso, et al., 2004). A secondary, but still important, reason for the statement of cash flows is also mentioned in the text. The statement of cash flows provides information on a cash basis about an organization’s operating, investing and financing activities. (Kieso, et al., 2004)
The statement......


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Approximate Word Count: 744
Approximate Pages: 3 (250 words per double-spaced page)

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