Why are companies required to prepare a statement of cash flows?
Accounting Homework
Write a 350-word response to the following:
Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?
Format your response consistent with APA guidelines.
……………………Answer preview……………….
Cash flow statements enable an organization to know the amount of income it earned within stipulated time frame and the expenses it incurs during the specified time. Investors determine a company’s generated income by reviewing the statements of cash flow……………………………….
APA
466 words