Statement of Cash Flows Concept
The Statement of Cash Flows Concept allows organizations to gain insights into their cash inflows and outflows over a specific period. It provides a comprehensive overview of changes in cash and cash equivalents, categorizing them into operating, investing, and financing activities. This statement helps businesses assess their liquidity, short-term financial flexibility, and overall financial health. By understanding the concept and components of the Statement of Cash Flows, stakeholders can make informed decisions about the company's financial performance and future prospects.
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