State the uses of cash flow statement.

Explanation

The various uses of money flow statement ar as follows

(i) initial of all a income statement along side different money statements provides data that permits users to judge changes in internet assets of associate degree enterprise, its money structure (including its liquidity and solvency) and its ability to have an effect on the amounts and timings of money flows so as to adapt to dynamic circumstances and opportunities.

(ii) income data is beneficial in assessing the power of the enterprise to come up with money and money equivalents and allows users to develop models to assess and compare the current price of the longer term money flows of various enterprises.

(iii) It conjointly enhances the similitude of the coverage of in operation performance by totally different|completely different} enterprises as a result of it eliminates the results of victimisation different accounting treatments for an equivalent transactions and events.

(iv) Historical income data is usually used as associate degree indicator of the quantity, temporal arrangement and certainty of future money flows. it's conjointly useful in checking the accuracy of past assessments of future incomes and in examining the link between gain and internet money flow and impact of adjusting costs.