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Why is Specific Disclosure of Cash Flow Financing Activities Important While Preparing Cash Flow Statement? - Accountancy

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Question

Why is specific disclosure of cash flow financing activities important while preparing Cash Flow Statement?

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Solution

The disclosure of cash flow from financing activities is important while because these are the activities which show changes in the composition and size of the capital structure and borrowings of an organisation.

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2013-2014 (March) All India Set 2
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