The financial statement that shows the effects of a company's operating, investing, and financing activities on its cash balance is known as the _________.
A) cash budget statement
B) pro forma financial statement
C) statement of cash flows
D) breakeven analysis

Question

Quizplus · Accepted Answer

The financial statement that shows the effects of a company's operating, investing, and financing activities on its cash balance is called the statement of cash flows. Option A, cash budget statement, is a tool for predicting future cash inflows and outflows. Option B, pro forma financial statement, provides estimates of future financial performance. Option D, breakeven analysis, calculates the point at which a company generates enough revenue to cover its expenses. None of these options focus specifically on tracking the effects of operating, investing, and financing activities on cash balance.

The Financial Statement That Shows the Effects of a Company's