The objective of Cash Flow Statement are: a. Analysis of cash position; b. Short-term cash planning;
c. Evaluation of liquidity; d. Comparison of operating performance;
Both (a) and (b)
All of the above
Both (b) and (d)
Both (a) and (c)
A
Both (a) and (c)
B
All of the above
C
Both (a) and (b)
D
Both (b) and (d)
Open in App
Solution
Verified by Toppr
A cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period.
The primary objective of cash flow statement is to provide useful information about cash flows of an enterprise during a particular period under various heads, i.e. operating, investing and financing activities.
Was this answer helpful?
1
Similar Questions
Q1
The objective of Cash Flow Statement are: a. Analysis of cash position; b. Short-term cash planning;
c. Evaluation of liquidity; d. Comparison of operating performance;
View Solution
Q2
Prepare a format of cash flow from operating activities under_*_ and indirect method.
* Preapre Cash Flow from Operating Activities using both the methods i.e. Direct and Indirect Method.
View Solution
Q3
In a statement of cash flows, a company investing in short-term financing investments and in fixed assets results in ______________.
View Solution
Q4
A) Funds flow statement and cash flow statement are one and the same. B) A cash flow statement can very well be equated with an 'Income statement'. Of these statements :-
View Solution
Q5
This method draws data from the income statement using cash receipts and cash disbursements from operating activities. The net of the two values is the operating cash flow. This method is___