11) The purpose of a cash flow statement is to show the inflows and outflows of cash.

 

12) The income statement shows the results of the operations of the business.

 

13) If a company issues a comparative balance sheet showing the change in the cash balance, a statement of cash flows is not needed.

 

14) According to GAAP, the statement of cash flows is an optional statement.

15) The final cash amount on the statement of cash flows must match the cash balance shown on the balance sheet.

 

16) Discuss the purpose of a statement of cash flows, and describe its components.

 

 

 



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