THE STATEMENT OF CASH FLOWS


         Associate Professor PhD Cernusca Lucian University „Aurel Vlaicu” of Arad,
                               luciancernusca_ro@yahoo.com
                   Professor PhD Mates Dorel, West University of Timisoara


        Abstract: In today’s business environment, it is not enough simply to monitor earnings and
earning per share measurements. An entity’s financial position and especially its inflows and
outflows of cash are also critical to its financial success. The statement of cash flows alerts
financial statement readers to increases and decreases in cash as well as to the reasons and trends
for the changes. This brief article is going to present a historical perspective on this financial
statement, the statement of cash flows’ purpose and, finally, the way of systematizing and reporting
the financial information on it.

       Key words: cash flows, financial statement.

       Jel codes: F39, M41.




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