Some accountants think that the Statement of Cash Flows is the most important financial statement. Do...

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Finance

Some accountants think that the Statement of Cash Flows is themost important financial statement. Do you agree or disagree withthis? Why or why not? Hint - consider a business that is highlycyclical in nature like an ice cream shop!

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I am agree with the statement Cash Flow is very important financial statement along with Profit Loss account and Balance Sheet The importance of Cash Flow Statement can be understand with the following points in detail 1 Short term planning Cash Flow Statement is a very useful and important tool for the management of the company for the purpose of the short term planning along with keeping the control of cash Every business entity has to keep a sufficient amount of liquid funds for meeting the various obligations so that as and when the requirement arises it can pay the same Thus the cash flow statement helps the See Answer

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Some accountants think that the Statement of Cash Flows is the most important financial statement. Do...

70.2K

Verified Solution

Question

Finance

Some accountants think that the Statement of Cash Flows is themost important financial statement. Do you agree or disagree withthis? Why or why not? Hint - consider a business that is highlycyclical in nature like an ice cream shop!

Answer & Explanation Solved by verified expert

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