Which of the following financial statements reports an increase or decrease in net cash during the time period covered?
A)Income statement
B)Statement of owner's equity
C)Statement of cash flows
D)Cash budget

Question

Quizplus · Accepted Answer

The statement of cash flows is the only financial statement that reports an increase or decrease in net cash during the time period covered. The income statement reports revenues and expenses, and the statement of owner's equity reports changes in equity, but neither necessarily reflect changes in cash. The cash budget is a forward-looking projection of expected cash inflows and outflows, but it does not report actual changes in net cash during a past time period.

Which of the Following Financial Statements Reports an Increase or Decrease