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Cash flow statements report a company's inflows and outflows of cash. This is important because a company needs to have enough cash on hand to pay its expenses and purchase assets. While an income statement can tell you whether a company made a profit, a cash flow statement can tell you whether the company generated cash.Cash flow statement the cash flow statement of the inflow and outflow of cash of the company. This is important because the company has enough cash on hand to pay expenses and acquisitions. While the profit and loss statement can tell companies that make a profit, cash flow statement, cash generating companies.
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