{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/230/10/#10-objectives","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"230","topic_title":"Statement of Cash Flows","subtopic":"230-10","subtopic_title":"Overall","section":{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"230-10-10-1","para":"10-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_744A1DB9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The primary objective of a statement of cash flows is to provide relevant information about the <a href=\"/glossary/c/#cash\" class=\"term\" title=\"Consistent with common usage, cash includes not only currency on hand but demand deposits with banks or other financial institutions. Cash also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. All charges and credits to those accounts are cash receipts or payments to both the entity owning the account and the bank holding it. For example, a bank's granting of a loan by crediting the proceeds to a customer's demand deposit account is a cash payment by the bank and a cash receipt of the customer when the entry is made.\"><span>cash</span></a> receipts and cash payments of an entity during a period. </span></span></div></div>","snippet":"The primary objective of a statement of cash flows is to provide relevant information about the cash receipts and cash payments of an entity during a period.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa44c0060235cd01a208b6c8bde76e93012652f97a70bef725c8bafcdeca1a84","downloaded_from":"2026-09-09T23:11:24.518Z","last_downloaded_at":"2026-09-09T23:11:24.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482817","source_sha256":"38999db51d6b28b5247154ca73edadda1557098668290ed94a6185c746149b44"}},{"citation":"230-10-10-2","para":"10-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_744A1EC4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The information provided in a statement of cash flows, if used with related disclosures and information in the other financial statements, should help investors, creditors, and others (including donors) to do all of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_744A2040-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Assess the entity's ability to generate positive future net cash flows </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_744A2173-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Assess the entity's ability to meet its obligations, its ability to pay dividends, and its needs for external financing </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_744A2295-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Assess the reasons for differences between net income and associated cash receipts and payments </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_744A23C4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Assess the effects on an entity's financial position of both its cash and noncash investing and financing transactions during the period. </span></span></div></li></ol></div></div>","snippet":"The information provided in a statement of cash flows, if used with related disclosures and information in the other financial statements, should help investors, creditors, and others (including donors) to do all of the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:122241302caf485796008210345bedbeef60ef26afdfbf10e08a665bb9e9d145","downloaded_from":"2026-09-09T23:11:24.518Z","last_downloaded_at":"2026-09-09T23:11:24.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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