The primary purpose of the statement of cash flows is to provide cash-basis information about the company's operating, investing, and financing activities.

Question

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The primary purpose of the statement of cash flows is to provide information about a company's cash receipts and cash payments during a period, under the categories of operating, investing, and financing activities, but it is not based on cash-basis accounting; rather, it reconciles net income (accrual basis) with cash flow.

The Primary Purpose of the Statement of Cash Flows Is