How is the information provided in the statement of cash, Accounting Basics

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How is the information provided in the statement of cash

Problem

Provide detailed answers to the following questions:

1. How is the information provided in the statement of cash flows different from the information reported in the income statement?

2. Why do you think most companies use indirect method of preparing statement of cash flows?

3. How do each of the three sections of the statement of cash flows relate to the Balance Sheet?

4. Net income is determined on accrual basis. However, net income is the first item on the statement of cash flows. Explain this obvious contradiction.

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Accounting Basics: How is the information provided in the statement of cash

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Accounting Basics: How is the information provided in the statement of cash

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