What is cash flow statement

What is cash flow statement
  • 1 answers

Yogita Ingle 3 months, 3 weeks ago

Objectives of Cash Flow Statement

1. To ascertain how much cash or cash equivalents have been generated or used in different activities i.e., operating/investing/financing activity.

2. To ascertain the net changes in cash and cash equivalents.

3. To assess the causes of difference between actual cash & cash equivalent and related net earnings/income.

4. To help in formulation of financial policies such as dividend policy, fixed assets policy, capital structure related policy.

5. To help in short-term financial planning.

6. To ascertain the liquidity of enterprises.

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