Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Which information financial users can get through the cash flow statement?
Options:
Sources of cash
Application of cash
Both options 1 and 2
None of these
Correct Answer:
Both options 1 and 2
Explanation:
Cash flow statement, which shows inflows and outflows of the cash and cash equivalents. This statement is usually prepared by companies which comes as a tool in the hands of users of financial information to know about the sources and uses of cash and cash equivalents of an enterprise over a period of time from various activities of an enterprise.