A statement of cash flows' purpose is to:
A) report the earnings of the company for an accounting period.
B) report the financial condition of the company.
C) report the changes in equity for a company.
D) summarize the sources and uses of cash by a company during an accounting period.

Question

Quizplus · Accepted Answer

The statement of cash flows is designed to summarize the sources (inflows) and uses (outflows) of cash by a company during an accounting period, highlighting how the company generates and spends its cash.

A Statement of Cash Flows' Purpose Is To