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1.what is the purpose of the topic irrecoverable debts and allowances? is it to find the amount receivables are supposed to pay us?
2.what is the purpose of cash flow statement? is it to generate a statement to management on the real, actual profits? because gain on revaluation is deducted from profit because it is not actual profit, what are we preparing the cash flow statement for?
3.what is the purpose of the cashbook? is it to make sure the amounts of receipts and payments are similar to the payments and receipts in the bank statement?
kindly assist me.
1. So that we can show in the SOFP a true amount of the money we expect to receive from receivables.
2. To inform shareholders what cash has been received by the business and what the business has done with the cash.
3. To keep track of how much cash the business has available at any time.
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