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This paper will also include an explanation of why statements of cash flows are important when assessing the financial strength of an organization.
According to the text, the main purpose of for the statement of cash flows is to “provide information about an entity’s cash receipts and cash payments during a period” (Kieso, et al., 2004). A secondary, but still important, reason for the statement of cash flows is also mentioned in the text. The statement of cash flows provides information on a cash basis about an organization’s operating, investing and financing activities. (Kieso, et al...
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