You are watching: The primary purpose of the statement of cash flows is to report

The major purpose of statement of cash flows is to reflect the true snapshot of cash (inflow and also out flow) of one entity. Through inflow and out flow it method Receipts and also Payments. It greatly separates the cash (Receivables, Payables, attention amounts, Purchase and also disposal of solved assets and also other investments) items native non-cash item (Depreciation)


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Answer included by Dewi Mahmudah Pirwadi, bureaucratic Assistant , Home treatment Center for domestic Workers Services, L.L.C8 years back

The main purpose of cash flows is to regulate inflow and also outflow that an reality then we can monitor it"s progress. That is provided to make part decisions to make better.