Since the Statement of Cash Flows Is So Useful,why Doesn't

question 17

Essay

Since the statement of cash flows is so useful,why doesn't FASB substitute it for the income statement?

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Definitions:

Damage

The physical harm or impairment to property or goods, potentially leading to financial loss or liability.

Periodic Inventory System

A method of inventory valuation in which physical inventory counts are conducted at specific intervals to determine cost of goods sold and ending inventory levels.

Physical Count

The process of manually counting and verifying the quantities of physical inventory in a business.

Inventory on Hand

The total quantity of goods or materials a business has in its possession, ready for sale or production.