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You are watching: The primary purpose of the statement of cash flows is to report

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


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Answer added by Dewi Mahmudah Pirwadi, governmental Assistant , Home care Center for residential Workers Services, L.L.C8 years ago

The primary purpose the cash flows is to regulate inflow and outflow the an entity then we have the right to monitor it"s progress. That is provided to make part decisions to make better.