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State how cash flow statements are historical in nature? - Accounts

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Question

State how cash flow statements are historical in nature?

Very Short Answer
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Solution

The profit and loss statement and balance sheet are used to make the cash flow statement, which is historical in nature because they are based on past deals.

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Chapter 13: Cash Flow Statement - SHORT ANSWER QUESTIONS [Page 13.101]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 13 Cash Flow Statement
SHORT ANSWER QUESTIONS | Q I. 28. | Page 13.101
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