A financial statement that shows how cash, as reflected in accrual accounting, flows into and out of a company during a specific period of operation is called the:
A)income statement
B)balance sheet
C)statement of retained earnings
D)statement of cash flows

Question

Quizplus · Accepted Answer

The statement of cash flows shows the inflow and outflow of cash in a company during a specific period of operation, making it the best choice for the provided description. The income statement shows the revenue and expenses during a given period, while the balance sheet shows the company's assets, liabilities, and equity at a specific point in time. The statement of retained earnings shows the changes in a company's retained earnings over a period, which is not the same as the inflow and outflow of cash.

A Financial Statement That Shows How Cash, as Reflected in Accrual