The purpose of a cash flow statement is to show the inflows and outflows of cash.
12) The income statement shows the results of the operations of the business.
13) For a statement of cash flows to be produced, an accountant needs to compare changes in the related income statements.
14) According to GAAP, the statement of cash flows is an optional statement.
15) The final cash amount on the statement of cash flows must match the cash balance shown on the balance sheet.
16) The purpose of a balance sheet is to show the inflows and outflows of cash.
17) The financial position of a business on a particular day is shown on the statement of cash flows.
18) The statement of cash flows can be used for evaluating, comparing, and predicting future cash flows.
19) One section of a statement of cash flows is purchasing activities.
20) Discuss the purpose of a statement of cash flows, and describe its components.
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