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You are watching: Primary purpose of the statement of cash flows

The major purpose of explain of cash operation is come reflect the true photo of cash (inflow and out flow) of one entity. Through inflow and out circulation it way Receipts and also Payments. It mostly separates the cash (Receivables, Payables, interest amounts, Purchase and also disposal of fixed assets and also other investments) items from non-cash items (Depreciation)


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Answer included by Dewi Mahmudah Pirwadi, administrative Assistant , Home treatment Center for domestic Workers Services, L.L.C8 years earlier

The primary purpose the cash operation is to regulate inflow and also outflow the an entity then we have the right to monitor it"s progress. The is offered to make part decisions to do better.