Statement of Cash Flows: Purpose, Importance, and Analysis

The Primary Purpose of the Statement of Cash Flows

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The primary purpose of the statement of cash flows is to:

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Explanations

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A. B. C. D.

C

Other financial statements are used to analyze revenues, expenses, assets, liabilities, and stockholders' equity. The statement of cash flows summarizes transactions affecting cash; it is the balance sheet that states the company's financial position at a point in time.