Purpose of the statement of cash flows


Please give an answer to the following questions below that contains 250 to 300 words for each.

Question 1. What is the purpose of the statement of cash flows? We already discussed the Balance Sheet, Income Statement and Statement of Retained Earnings. If you wanted to invest in a company, what information would you look for in the financial statements?

Question 2. Distinguish between the two categories of adjusting entries, and identify the types of adjustments applicable to each category.

Question 3. Explain the matching principle and give specific examples where the matching principle needs to be applied.

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Accounting Basics: Purpose of the statement of cash flows
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