Which of the following financial statements reports an increase or decrease in net cash during a specific period of time?
A) Income statement
B) Statement of retained earnings
C) Statement of cash flows
D) Cash budget

Question

Quizplus · Accepted Answer

The statement of cash flows reports the inflows and outflows of cash during a specific period of time, including operating activities, investing activities, and financing activities. It shows the net increase or decrease in cash during the period. The income statement reports the revenues and expenses for a period, but does not necessarily reflect changes in cash. The statement of retained earnings shows the changes in a company's retained earnings account, which is not the same as cash. The cash budget is a projection of future cash inflows and outflows, not a report of past cash activity.

Which of the Following Financial Statements Reports an Increase or Decrease