The Cash Flow Statement or Statement of Cash Flows is required as part of a full set of financial statements because of the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 95, Statement of Cash Flows.

You can read Statement No. 95 at no cost at www.FASB.org/st.

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

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