If a shareholder wanted to know how money flowed into and out of the company, which financial statement would the shareholder use?
A) income statement
B) statement of cash flows
C) balance sheet
D) statement of stockholder's equity

Question

Quizplus · Accepted Answer

The statement of cash flows shows the inflow and outflow of cash in a company, including operating, investing, and financing activities. This would provide the shareholder with information about how money is flowing into and out of the company. The income statement shows a company's revenues and expenses, the balance sheet shows the company's assets, liabilities, and equity, and the statement of stockholder's equity shows changes in equity over time.

If a Shareholder Wanted to Know How Money Flowed into and Out