What is the purpose of the cash flow statement?

:Purpose of cash flow statement *provide some information about cash receipts, cash payments, and net change in cash resting from the opening, investing and financing activities of the company during the period Also is to provide information about a company 's gross receipts and gross paymentdomestic for a specific period

The purpose of the cash flow statement or statement of cash flows is to provide information about a company's gross receipts and gross payments for a specified period of time.

The gross receipts and gross payments will be reported in the cash flow statement according to one of the following classifications: operating activities, investing activities, and financing activities

 

Basically, to provide us with the needed information that will help us to collect data from certain statements that we are looking forward to achieve or objectives. 

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 provide information about a company's gross receipts and gross payments for a specified period of time.

to clarify the changes that monetary developments of the movement of the entity during the financial period 

 

 

The purpose of the cash flow statement or statement of cash flows is to provide information about a company's gross receipts and gross payments for a specified period of time.

In summary the objective of CF

• Standards compliance (IFRS Framework and IAS7)
• Reconciliation of cash and cash equivalent with balance sheet
• Reconconciliation of Net Profit/(loss) using indirect method
• Classification of  Operation, Financial and investing activities
• Regularity Compliance in some cases

      Purpose is to clarify the changes that monetary developments of the movement of the entity during the financial period and to clarify the ability of established obligations to repay short order during the next period

The purpose of cash flow statement is to provide information abt cash receipt , cash payment , net change in cash resulting from operation ,investment and financial activites of company during the period