Cash flow financial statement

This week’s readings describe three major financial statements. Based on these and outside research answer the following questions in 2-3 well formed paragraphs.

Which of the three major financial statements do you believe to be the most important? Why? Provide a substantiated rationale for your position.

Support your statements with evidence from the required studies and your research.

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Introduction

The Cash flow statement is definitely the most important of all the other financial statements. This is because it addresses the out and inflow of cash within an organisation. This statement uses cash accounting which is a system that is used to track actual inflow and out flow of cash. It provides even the most recent transactions. It importance over the other financial accounts is highlighted by its functions that are listed below (Bruns, 2014).

Its importance

It prevents a company from reaching a bankruptcy or cash crunch………………….

APA

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