Which of the following questions does a statement of cash flows answer?
A) How profitable is the business?
B) How much debt has the business accumulated?
C) What is the degree of liquidity for the business?
D) Where did the cash come from?

Question

Quizplus · Accepted Answer

A statement of cash flows answers where the cash came from and where it was used in a given period, providing information on the sources and uses of cash in the business. Options A and B are answered by the income statement and balance sheet, respectively, while option C is related to both the balance sheet and the statement of cash flows.

Which of the Following Questions Does a Statement of Cash