

Cash Flow Statement: Importance and Classification
In this article, I would like to discuss the importance and the classification of a cash flow statement. The cash flow statement is to provide imperative information to investors and creditors to assess the following of your entity: The ability for the entity to generate future cash flow. The ability to meet obligations. The ability to identify as to the reasons for the difference between net income and net cash flow from operating activities. The cash and non-cash investing