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Why Is the Statement of Cash Flows Required as Part

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Why is the statement of cash flows required as part of the set of external financial statements?


Definitions:

Communication Network

The structure and methods by which information is transmitted and received among members of an organization or social group.

Policies

Principles or rules that guide decisions and achieve rational outcomes.

Procedures

Established methods or sequences of actions for performing tasks or achieving specific objectives, often documented for consistency and efficiency.

Downward Communication

Messages sent from the upper levels of the organizational hierarchy to the lower levels.

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