The statement of cash flows does which of the following?
A) Explains what caused profit during the accounting period.
B) Identifies all assets held at the end of the accounting period by type and amount.
C) Explains that the trial balance is in balance.
D) Explains all the sources and uses of cash during the accounting period.

Question

Quizplus · Accepted Answer

The statement of cash flows is specifically designed to report all the sources (inflows) and uses (outflows) of cash during a particular accounting period, helping users understand how a company's cash position changes over time.

The Statement of Cash Flows Does Which of the Following