Internal users of the statement of cash flows often use cash flow information to plan day-to-day operating activities and make long-term financial decisions.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about the cash inflows and outflows of an organization which is crucial for internal users to plan day-to-day operating activities and make long-term financial decisions. Internal users like management, employees, and shareholders often use the cash flow information to determine the financial health and stability of the organization.

Internal Users of the Statement of Cash Flows Often Use