Which of the following statements best describes the cash flow statement?
A)It provides information about the financial position of an entity at a specific point in time.
B)It measures the economic performance of the entity over a period of time.
C)It summarizes the changes to retained earnings during a period.
D)It shows how an entity managed its cash during the reporting period.

Question

Quizplus · Accepted Answer

The cash flow statement shows how an entity managed its cash during the reporting period by providing information on cash inflows and outflows from operating, investing, and financing activities. Options A and B refer to the balance sheet and income statement, respectively. Option C describes the statement of retained earnings.

Which of the Following Statements Best Describes the Cash Flow