Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 18 - No. 21)

What is the purpose of a 'Statement of Cash Flows'?
To show the company's profitability.
To provide information about a company's financial position.
To present the changes in a company's cash balance over a period.
To show how much equity the owner(s) have

Explanation

The statement of cash flows summarizes the cash inflows and outflows of a company over a specific period, categorizing them into operating, investing, and financing activities.

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