Question

In: Accounting

The cash flow statement helps users to assess a hospital or clinics liquidity, financial flexibility, operating...

The cash flow statement helps users to assess a hospital or clinics liquidity, financial flexibility, operating capabilities, and risk

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Expert Solution

The statement is TRUE.

The cash flow statement helps users to assess liquidity, financial flexibility, operating capabilities, and risk in organization of hospital or clinic.

Cash Flow statement provides flow of cash used or generated from the activities performed by the organization during a period. the activities are divided into 3parts (i) Operating Activities (Principal business activity) (ii) Investing activities and (iii) Financing activities.


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