Acc 291 Week 4 Discussion 1

Question: #1852

acc 291 Week 4 Discussion 1

 Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?

Solution: #1839

ACC291 Week 4 Discussion 1

• Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company? Companies are required to prepare a statement of cash flows because this allows external users of the annual reports to make economic decisions and analysis about the companies. The balance sheet, the income statement, and the ...