The objective of Cash Flow Statement are:
a. Analysis of cash position;
b. Short-term cash planning;
c. Evaluation of liquidity;
d. Comparison of operating performance;

Both (a) and (b)

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Both (a) and (c)

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Both (b) and (d)

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All of the above

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Solution

The correct option is B All of the above
A cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period.

The primary objective of cash flow statement is to provide useful information about cash flows of an enterprise during a particular period under various heads, i.e. operating, investing and financing activities.

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The objective of Cash Flow Statement are:a. Analysis of cash position;b. Short-term cash planning;c. Evaluation of liquidity;d. Comparison of operating performance;

The objective of Cash Flow Statement are:
a. Analysis of cash position;
b. Short-term cash planning;
c. Evaluation of liquidity;
d. Comparison of operating performance;