The Statement of Cash Flows

In a 300-400 word Discussion:

Discuss the interrelationship of the cash flow statement to the other financial statements. In your discussion comment and explain operating activities, investing activities, and financing activities. What is the difference between an indirect and a direct cash flow statement? Which is GAAP

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The cash flow statement shows the inflow and outflow of cash throughout the specified financial year and it also shows the amount of cash in hand a business has. This amount is also shown on the balance sheet as an asset thus the relationship between the cash flow statement and the balance sheet. The profit or loss in an income statement is included in the cash flow statement to cover the operative activities of the business. A cash flow statement shows the net changes in the cash and cash payments resulting from operating, investing and financing activities of a business during a specified period (King, 2005). Cash…..

APA

367 words