- Some might argue that the statement of cash flows is an optional financial statement and does not provide critical information needed for a firm or investor to succeed. Do you agree with this statement? Why or why not?
My response. Any other suggestions?
“The statement of cash flows financial statement represents the actual movement of cash through a company. It allows the reconciliation of the flow of cash with changes in the amounts of cash and marketable securities.” (South University Online, 2018, para. 1) I disagree that the financial statement should be considered optional. The cash flow statement shows how much cash the company has in inflows and outflows. It is used to prevent and monitor debt. It prevents unnecessary spending and late payment penalties. Ensures that the company has regular income from outside investments or cash borrowing.