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Well first of all cash flow/ cash gifting is illegal because once you go an pay you are getting money from a source that no one really knows. You can be getting it from drugs, printing, or just people are doing something where they are trying to get rid of stolen or illegally earned money.

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Ulises Koss

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2y ago
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Wiki User

13y ago

The cash-flow statement is used by creditors and investors to determine whether cash will be available to meet debt and dividend payments.

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Q: What is the purpose of the statement of cash flow?
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Related questions

What is a cashflow budget?

Budgeted cash flow statement is the estimated cash flow statement for planning purpose before the actual activity starts


What are the object and stages of cash flow statement detail?

Main purpose of cash flow statement is to show the cash inflows and outflows from different business activities.Stages are as follows:Cash flow from operating activitiesCash flow from financing activitiesCash flow from investing activities


Is cash in bank reported in cash flow statement?

The balance of a bank loan is a liability item on a balance sheet (or net worth statement). The principal and interest payments used to repay the bank loan are cash outflows (debt expenses) on a cash flow statement.


What is another name for cash flow of statement?

Another name of cash flow statement is fund flow statement.


What is cash-flow statement?

Cash flow statement is the statement which show the cash flow from operating, financing and investing activities.


Period expenses which do not affect the cash flow of the company should be excluded from the cash flow statement and how true is this statement?

Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.


Structure of cash flow statement?

structure of cash flow statement as follows:1


What statement reports Free cash flow?

Free cash flow is the sum of operating and investing cash flows, which are reported on the cash flow statement.


How is bank overdraft treated in the cash flow statement?

Prime purpose of preparing cash flow statement is to tally the closing bank balance with opening bank balance so if there is a bank overdraft or negative bank balance it will automatically adjusted when complete cash flow statement is prepared. If after the preparation of cash flow, cash flow balance and bank balance don't tally it means there is some mistake in cash flow statment and it should be reviewed for any correcions.


What is another name for the statement of cash flows?

Another name of cash flow statement is fund flow statement.


Features of Cash flow statement?

Sample cash flow statement as follows:1 - Cash flow from operating activitiesReceived from debtorsPayment to creditors2 - Cash flow from financing activitiesPurchase (sales) of asset3 - Cash flow from investing activitiesnew share capital introduced etc.


Do you include capital in cash flow statement?

yes changes in capital is shown in cash flow from financing activities in cash flow statement.