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4. REPORTING 4.5 Statement of Cash Flows 4.5.10 The government must present a statement of cash flows for proprietary funds. The only acceptable method of presentation is the direct method. In using
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What is statement of cash flows?
Statement of cash flows is a financial statement that shows the inflows and outflows of cash and cash equivalents in a business during a specific period of time.
Who is required to file statement of cash flows?
Publicly traded companies, as well as some privately held companies, are required to file statement of cash flows as part of their financial reporting obligations.
How to fill out statement of cash flows?
To fill out a statement of cash flows, one must categorize cash inflows and outflows into operating, investing, and financing activities, and then calculate the net cash flow.
What is the purpose of statement of cash flows?
The purpose of statement of cash flows is to provide information about a company's cash flow and liquidity position, and to help investors and analysts assess the financial health of the business.
What information must be reported on statement of cash flows?
Information such as cash receipts and payments from operating, investing, and financing activities, as well as the beginning and ending cash balances must be reported on the statement of cash flows.
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