What Is the Primary Purpose of the Statement of Cash

question 24

Essay

What is the primary purpose of the statement of cash flows and what if used with information in the other financial statements does it help external users?

---

Definitions:

Technical Bulletins

Official communications issued to provide instructions, information, or updates on technical aspects of products or services.

FASB

The Financial Accounting Standards Board, an organization that establishes financial accounting and reporting standards within the United States.

Primary Markets

Markets where securities are created and issued for the first time, allowing companies and governments to raise capital by selling stocks and bonds directly to investors.

Secondary Markets

Secondary Markets are markets where investors trade previously issued securities, such as stocks and bonds, among themselves, rather than purchasing them directly from the issuing company.