Solved: What is the purpose of a statement of cash flows, Accounting Basics

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What is the purpose of a statement of cash flows

QUESTIONS:

1. What is the purpose of a statement of cash flows?

2. How does it differ from a balance sheet and an income statement?

3. What is working capital?

4. How does working capital relate to the operating cycle?

5. Why is the distinction between paid-in capital and retained earnings important?

6. Of what use is the statement of cash flows?

7. Differentiate between investing activities, financing activities, and operating activities

8. How do you prepare a Balance Sheet?

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Accounting Basics: What is the purpose of a statement of cash flows

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