Why Do Cash Flow Statements Provide a Useful Addition to the Statement

question 3

Multiple Choice

Why do cash flow statements provide a useful addition to the statement of comprehensive income and statement of financial position of an entity?

• A)cash flow statements provide a useful insight into the entities compliance with IASB's regulations
• B)cash flow statements provide a useful insight into the entities incomplete transactions,where profit or loss can only be estimated by means of the accruals concept
• C)Cash flow statements provide a useful insight into the entities profit margins
• D)Cash flow statements provide a useful insight into the entities income