Question

Answer the following question:
State any one objective of preparing Cash Flow Statement.

State the primary objective of preparing cash flow statement.

Answer 1

The foremost objective to prepare Cash Flow Statement is to ascertain gross inflows and outflows of cash and cash equivalents from various activities of a business.

Answer 2

The primary objective of the cash flow statement is to provide useful information about cash flows (inflows and outflows) of an enterprise during a particular period under various heads, i.e., operating activities, investing activities, and financing activities.