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Statement of cash flows - Coggle Diagram
Statement of cash flows
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The statement of cash flows provides additional information to supplement the other prima financial statements showing changes in cash and cash equivalents over the reporting period
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The statement of cash flows provides management with a way of measuring an organisation's effectiveness by listing all cash inflows and outflows
The statement reflects an entity's cash position to help assess the viability of a business in terms of liquidity, solvency and financial adaptability
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The statement of cash flows should indicate any looming problems in the entity's capability of meeting its future financial obligations, eg the P&L could show a healthy figure for operating profit but the statement of cash flows could show a gloomier picture of actual csh flow from operating activites
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