Which of the following statements regarding the statement of cash flows is true?
A) The statement of cash flows analyzes the change in cash.
B) The statement of cash flows is organized to present classifications for total cash inflows and not cash outflows.
C) The statement of cash flows analyzes only the changes in current assets and current liabilities.
D) The statement of cash flows is an optional financial statement.

Question

Quizplus · Accepted Answer

The statement of cash flows is used to analyze the change in cash during a period of time. It presents total cash inflows and outflows, and classifies them as operating, investing, and financing activities. It also considers changes in non-cash assets and liabilities that affect the cash balance. The statement of cash flows is required by generally accepted accounting principles (GAAP) and is a mandatory financial statement for companies.

Which of the Following Statements Regarding the Statement of Cash