Response to DB Question:
The cash flow statement is important because it is used to measure the cash position of the business, i.e., the inflow and outflow of cash and cash equivalents in the business for an accounting year, and it also helps the business to know the availability of cash in their business.). A cash flow statement is important to your business because it can be used to assess the timing, amount and predictability of future cash flows and it can be the basis for budgeting, and a cash flow statement can answer the questions, “Where did the money come from?” and “Where did it go?”
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