with explanation PLEASE! If a firm presents an income statement and a balance sh

Question

with explanation PLEASE!

If a firm presents an income statement and a balance sheet, why is it necessary that a statement of cash flows also be presented? Into what three categories are cash flows segregated on the statement of cash flows? Indicate the three techniques that may be used to complete the steps in developing the statement of cash flows. There are two principal methods of presenting cash flow from operating activities-the direct method and the indirect method. Describe these two methods. Depreciation expense, amortization of patents, and amortization of bond discount are examples of items Why is it important to disclose certain noncash investing and financing transactions, such as exchanging common stock for land? Would a write-off of uncollectible accounts against allowance for doubtful accounts be disclosed on a cash flow statement? Explain. Depreciation expense, amortization of patents, and amortization of bond discount are examples of items that are added to net income when using the indirect method of presenting cash flows from operating activities. Amortization of premium on bonds and a reduction in deferred taxes are examples of items that are deducted from net income when using the indirect method of presenting cash flows from operating activities. Explain why these adjustments to net income are made to compute cash flows from operating activities. What is the meaning of the term cash in the statement of cash flows? What is the purpose of the statement of cash flows?

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