Explain the Purpose and Format of the Statement of Cash

question 27

Essay

Explain the purpose and format of the statement of cash flows. Also describe its relevance to decision makers.

---

Definitions:

Germinal Period

Also referred to as the period of the zygote; refers to the first 2 weeks after conception.

Zygote

The initial cell formed when a new organism is produced by the joining of a male sperm and a female ovum.

Blastocyst

An early stage embryo consisting of a sphere of cells surrounding a fluid-filled cavity and a cluster of cells inside known as the inner cell mass, which eventually develops into the fetus.

Fetus

A developing mammal or human from the end of the embryonic stage (usually from nine weeks after fertilization) to birth.