The primary purpose of the statement of cash flows is to
A) provide information about the investing and financing activities during the period.
B) prove that revenues exceed expenses if there is a net income.
C) provide information about the sources and uses of cash during a period.
D) facilitate banking relationships.

Question

Quizplus · Accepted Answer

The primary purpose of the statement of cash flows is to provide information about the sources and uses of cash during a period. It shows the net change in cash that occurred during the period and helps stakeholders understand how a company generated and used its cash.

The Primary Purpose of the Statement of Cash Flows Is