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Why is the statement of cash flows required

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Why is the statement of cash flows required as part of the set of external financial statements? What can one learn from the statement of cash flow that can't necessarily be learned from reading the income statement or balance sheet? Provide at least 3 insights that can be gleaned from the statement of cash flow that could not be learned from the other statements.

Transaction that involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows. Describe two exceptions to this generalization. What is the essential characteristic of the transaction that qualifies as an exception?

Reference no: EM133266777

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