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end of a month/year).
4. The cash flow statement reports the cash coming in (cash receipts) and the amount of cash going out (cash payments) during a period. The issue is a net cash inflow (receipts > payments) or a net cash outflow (receipts < payments).
Providing information useful to users for making and evaluating decisions about the allocation of scarce resources though the financial statements are important for 2 types of users:
1. External users audited to secure that the company is handling record properly (e.g. loan demand and bank). The preparer must indicate to the reader whether or not the information contained within the statements complies with GAAP...
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