Which of the following best describes the organization of a statement of cash flows?
A) Assets = liabilities + stockholders' equity
B) Revenues ― expenses = net income
C) Operating, investing, and financing cash flows
D) Cash in, cash out
E) Payments ― receipts = cash

Question

Quizplus · Accepted Answer

The organization of a statement of cash flows typically involves categorizing cash flows into three main sections: operating, investing, and financing. This helps provide a clear overview of the sources and uses of cash for a business over a given period of time. Option A describes the accounting equation, B describes the formula for calculating net income, D and E oversimplify the concept of cash flows.

Which of the Following Best Describes the Organization of a Statement