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cash flow statement

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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June 14, 2022 at 4:30 am #658677
jermy01
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343 Which of the following is not an advantage of the statement of cash flows?
A It highlights the effect of non?cash transactions
B It helps an assessment of the liquidity off a business
C The numbers within it cannot be manipulated through the adoption of beneficial
accounting policies
D It helps users to estimate future cash flows
Answer is A but why? Can you explain, sir?
June 14, 2022 at 7:23 am #658685
John Moffat
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The whole point of the statement of cash flows is that is summarises cash transactions. It does not show transactions that were not in cash.
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