Why is the cash flow statement usetul to the users of the financial statements?

A$.$ The statement of cash flows lists all transactions where cash was involved. The statement is useful in explaining and reconcling cash in bark and cash on hand.

$8.$ The statement of cash fows summarizes cash inflows and outfows for a firm over a period of sime. Ris a flow statement that is only used to explain income and experses tom operations. The statement is also specifically useful in explaining changes in the bank balance.

C$.$ The statement of cash flows summarizes changes in accounta receivable and accounts payable. Eis a summay statement that is used for aging receivables and payables. The statement is also useful in explaining stockholders' equity, partioularly when the statement is used with other financial statements and selated footnote disclosures.

D$.$ The statement of cash flows summarizes cash inflows and ouffows for a firm over a perfod of time. It is a flow statement that is used to explain the change in cash and cash equations. The statement is also usetul in explaining and reconolling many other signiflcant changes in balance sheet Bens, partioularly when the statement is used with the other financial statements and related footnote disclosures.