Accounting · Cash Flow Statement
Which of the following correctly states the primary objectives of preparing a Cash Flow Statement?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To calculate the gross profit of the business
- 2To analyze the inflow and outflow of cash and assess the liquidity position✓
- 3To record only non-cash transactions
- 4To determine only the net profit of the business
Correct answer
To analyze the inflow and outflow of cash and assess the liquidity position
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