Which is not a purpose of the Statement od Cash Flows

chuckeeebeee · #1 May 5, 2007, 07:38 AM

Questions is: Which of the following is not one of purposes of the statement of cash flows?
a. To provide information concerning the business reasons as to what caused the changes in the company's cash and cash equivalents during the accounting period in question?
b. To provide information about the profitability of the company
c. To provide information about how a company obtains and uses its cash
d. To provide information about the cash flows related to operating, investing and financing activities
e. To provide information about how a company spends its cash

Thank you for your help in answering this question.

goldenbutterfly · May 6, 2007, 08:28 AM

My answer would be letter B because its the income statement that provides info on the profitability of the company. All other answers pertain to the cash flow statement.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!