Question -
Answer -
Following are uses of cash flow statement:
1. Useful for evaluating cash position of a firm
2. Helpful in finding deficiencies and variations in firms performance which helps in effective decision making
3. It helps in assessment of liquidity of a company
4. It analyses cash receipts and payments from the various activities of a company and helps in short term planning
5. It helps in segregating cash flows obtained from the various activities of the business
6. It helps in providing decision about distribution of profit.
7. It is useful for short term financial analysis