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Statement 1 - "Cash Flow Statement is a tool of financial statement analysis". Statement 2 - Cash flow statement is usually prepared by companies which comes as a tool in the hands of users of

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Question

Consider the following statements.

Statement 1 - "Cash Flow Statement is a tool of financial statement analysis".

Statement 2 - Cash flow statement is usually prepared by companies which comes as a tool in the hands of users of financial information to know about the sources and uses of cash.

Options

  • Only statement 1 is correct 

  • Only statement 2 is correct

  • Both the statement is correct

  • None of these

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Solution

Both the statement is correct.

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