The statement of cash flows shows the user why a firm's investments and financial structure have changed between two balance sheets dates.

Question

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The statement of cash flows tracks the inflows and outflows of cash over a set period, typically a year. It shows how a company's cash position has changed between two balance sheet dates, and why those changes occurred. By detailing a company's cash flow from operations, investing, and financing activities, stakeholders can gain insights into how the company is investing its money and what sources it is using to fund its operations.

The Statement of Cash Flows Shows the User Why a Firm's