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The statement of cash flows. Presenting information on cash flows has become an important part...

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Accounting

The statement of cash flows.

Presenting information on cash flows has become an important part of financial reporting. Required :

a. What goals are attempted to be accomplished by the presentation of cash flow information to investors?

b. Discuss the following terms as they relate to the presentation of cash flow information:

  1. Liquidity
  2. Solvency
  3. Financial flexibility

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