A statement of cash flows is different than a balance sheet or an income statement because it does not reflect the amount of incoming and outgoing transactions that have been recorded ________.
A)on credit
B)by computer
C)on loan
D)below $100

Question

Quizplus · Accepted Answer

A statement of cash flows only reflects transactions that involve actual cash inflows and outflows, regardless of whether they were made on credit or not. Therefore, option A is the best choice. Options B, C, and D do not correctly describe the difference between a statement of cash flows and other financial statements.

A Statement of Cash Flows Is Different Than a Balance