The financial statement that provides information about cash receipts and cash disbursements for the period is the
statement of cash flows.
The financial statement that provides information about cash receipts and cash disbursements for a period is the cash flow statement, also known as the statement of cash flows.
A cash flow statement provides information on how cash inflows and outflows affect a company’s overall cash balance. It shows the sources of cash inflows, such as cash sales, collections from customers, and investment income, as well as the uses of cash outflows, which may include payments to suppliers, employees, and lenders, among others.
The cash flow statement is an essential tool for business owners, investors, and financial analysts who want to understand a company’s liquidity and ability to generate cash. It helps to assess how efficiently a company is managing its cash resources and whether it has sufficient cash to meet its financial obligations and drive growth.
Overall, the cash flow statement is a crucial financial statement that complements the income statement and balance sheet in providing a complete picture of a company’s financial performance and health.
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