Cuero Co.reported a net loss of $30,000 for 2015, yet its cash balance increased during the year.Which financial statement should Cuero's management refer to for an explanation of this situation?
A)Balance sheet
B)Income statement
C)Statement of Retained Earnings
D)Statement of Cash Flows

Question

Quizplus · Accepted Answer

The statement of cash flows provides information regarding the sources and uses of cash during the period, which would explain why the cash balance increased despite the net loss reported on the income statement.

Cuero CoReported a Net Loss of $30,000 for 2015, Yet Its