The statement of cash flows:
A) serves as a replacement for the income statement and balance sheet.
B) shows the sources and uses of cash at one point in time.
C) shows the sources and uses of cash for one period of time.
D) is both A and B above.

Question

Quizplus · Accepted Answer

The statement of cash flows shows the sources and uses of cash for one period of time, typically a fiscal quarter or year. It is not a replacement for the income statement or balance sheet, but rather complements them by providing information on cash flows that is not captured elsewhere. Therefore, option A and B are incorrect, and option D is also incorrect as it includes both A and B.

The Statement of Cash Flows