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What is the Object of Preparing a Cash Flow Statements? the Important Objectives for Preparing Cash Flow Statement Are as Follows. - Accountancy

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What is the object of preparing a Cash Flow Statements? 

The important objectives for preparing Cash Flow Statement are as follows.

  1. It helps to ascertain the gross inflows and outflows of cash and cash equivalents from various activities.
  2. Secondly, Cash Flow Statement helps in analysing various reasons responsible for change in the cash balances during an accounting year.
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2011-2012 (March) All India Set 1
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