Asked by Meagan Silver on Jul 21, 2024
Verified
A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.
Statement of Cash Flows
A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.
Financing Transactions
Financial activities that involve raising funds for a company, including debt, equity, or other financial instruments.
Investing Transactions
Financial activities related to the acquisition or sale of long-term assets and investments not used in the normal course of business.
- Investigate the key intention and objectives behind the cash flow statement.
Verified Answer
SC
Steve ClarkJul 24, 2024
Final Answer :
False
Explanation :
The primary objective of the statement of cash flows is to show the cash inflows and outflows from operating, investing, and financing activities, not necessarily the income or loss on those transactions.
Learning Objectives
- Investigate the key intention and objectives behind the cash flow statement.