The funds flow analysis is of primary importance to_______

Question

RRB Paper · Accepted Answer

The funds flow analysis is of primary importance to financial management.
Financial statements, (income and position statements) are statistic in nature and do not reveal dynamic aspects of a firm, i.e. movement of funds.
So, a funds flow statement is an essential tool for financial analysis and is of primary importance to the financial management.
The basic purpose of this statement is to indicate where the funds came from and where it was used during a certain period.

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