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The use of cash flow statement is very much in conjunction withe the rest of the financial statements.
cash flow statement enhance comparability as they are not affected by differing accounting policies used for the same type of transactions or events
Cash flow information can be used as an indicator of the amount, timing and certainty of future cash flows.
Past forecast cash flows can be checked for accuracy as actual figures emerge
cash can help appreciate the change in net assets, of the entity's financial position ( liquidity and solvency) and the entity's ability to adapt to changing circumstances by adjusting the amount and timing of cash flows.
