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What Is the Purpose of the Statement of Cash Flows

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Essay

What is the purpose of the statement of cash flows? List the three major categories of cash flows and give an example of a cash transaction for each category.


Definitions:

Financial Reports

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements, among others.

Decision Making

Process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.

Accountant

A professional who performs accounting functions such as audits or financial statement analysis.

Not-for-profit Accountant

A finance professional specializing in managing the finances of organizations that do not seek to make a profit.

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