A statement of cash flows is generated to show
A)the revenues the company has earned during the period.
B)the expenses the company incurred during the period.
C)how profits were generated during the period.
D)the inflow and outflow of cash during the time period.

Question

Quizplus · Accepted Answer

A statement of cash flows is used to show the inflow and outflow of cash during a specific time period, including cash generated from operating activities, investing activities, and financing activities. It provides insight into a company's liquidity and ability to generate cash. It does not show revenues or expenses specifically, but rather how those revenues and expenses affect the cash position of the company.

A Statement of Cash Flows Is Generated to Show