You are watching: The primary purpose of the statement of cash flows is to report
The primary purpose of statement of cash operation is to reflect the true photo of cash (inflow and out flow) of an entity. By inflow and out flow it method Receipts and Payments. It mostly separates the cash (Receivables, Payables, interest amounts, Purchase and also disposal of fixed assets and other investments) items indigenous non-cash items (Depreciation)
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Answer included by Dewi Mahmudah Pirwadi, governmental Assistant , Home treatment Center for residential Workers Services, L.L.C8 years ago
The primary purpose the cash operation is to manage inflow and also outflow the an reality then we have the right to monitor it"s progress. It is used to make part decisions to make better.