| Home> Class-12> BOOK KEEPING AND ACCOUNTANCY >Q 88 |
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Que : 88. Write the importance of Cash Flow Statement. |
Answer: i. a cash flow statement when used along with other financial statements provides information that enables users to evaluate changes in net asset of an entrepprise, its financial structure . ii. useful in assessing the ability of the entrprise to generate cash and cash equivalent and enables users to develop models to assess and compare the rpesent value of the future cash iii. it also enhances the comparability of the reporting of operatingerformance by different entrerise iv. it also helps in balancing its cash inflow and cash outflow, keeping in response to changing conditions. |
