Why is separate disclosure of cash flows from investing activities important? State.
Why is separate disclosure of cash flow from investing activities important while preparing Cash Flow Statement?
The cash outflows due to investing activities are huge and used to acquire long-term assets. If not disclosed in a separate manner it will signal a wrong position of cash and cash equivalents.
The separate disclosure of cash flow from investing activities is important as it helps to show the
inflows and outflows of long-term investments and fixed assets.
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