aliya bhat
asked about 3 years ago
Hi I am Adhya. May I know, Why is the cash flow statement not a suitable judge of profitability?
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RISHAV
answered about 3 years ago
Cash flow statement only shows the transactions which affect the cash balance. There are many other transactions which do not affect the cash but affect the profit. The cash flow statement does not give affect to them. It is the reason why cash flow statement is not suitable for judgement of profit.
