What are the objectives of preparing cash flow statement?

Explanation

The various objectives of getting ready income statement area unit as follows

(i) the primary and most vital objective money|of money} flow statement is that it helps to determine the gross inflows and out flows of money and cash equivalents from in operation, finance and monetary activities.

(ii) A income statement helps in determinative the varied causes for amendment within the money balances throughout associate degree accounting amount.

(iii) A income statement is additionally ready to see the liquidity position of the organisation.

(iv) furthermore a income statement is ready to understand regarding the need of money in future.