Wize University Introduction to Financial Accounting Textbook > Financial Statements
Statement of Cash Flows
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The Purpose of the Statement of Cash Flows
The last of the major financial statements focuses on the inflows and outflows of cash during the reported period. It is an important statement as it sheds light on the company's liquidity and whether it can afford its expenditures.
- Provides a detailed look at how cash was raised and used during the reporting period.
- Used to determine how well the company is managing its cash.
- Segments cash flows:
- Operating Activities
- Investing Activities
- Financing Activities
