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Explain the Purpose of a Cash Flow Statement, and List

question 41

Essay

Explain the purpose of a cash flow statement, and list five of the basic elements.


Definitions:

Internal Control

A process implemented by a company to help ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Voucher System

An accounting system that involves the process of creating, approving, and documenting all purchases made by the company through vouchers.

Voucher Register

A comprehensive log that records details of all vouchers issued, including payment information, for accounting and auditing purposes.

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