Question

What can we learn about stewardship from the Statement of Cash Flows? What insights does it provide that we can’t learn from the other 3 Financial Statements?

Answer 1

Stewardship of cash flow statement means that the cash flow statement are being provided with reliable information and transperancy is being followed.

The stewardship that cash flow statements can provide are not provided by other 3 financial statements are :

• Cash flow statements tell us all about the flow of cash and sources of inflow and outflow of cash.
• Stewardship of cash flow statement ensures that the management and other stakeholders of the organisation are provided with reliable information about the cash flows.
• Investors to the organisation do research on cash flow statement to decide whether to invest or not.
• Stewardship of cash flow also helps the management in decision making and learn about the cash entering and leaving the organisation.
• The stewardship of cash flow statement helps in understanding the company's operations and preparation of other financial statements.