The accounting report that is specifically designed to answer the question, 'What cash movements took place over a particular period?' is:
A)the statement of financial position.
B)the statement of cash flows.
C)the statement of comprehensive income.
D)all of the above.

Question

Quizplus · Accepted Answer

The statement of cash flows is specifically designed to answer the question of what cash movements took place over a particular period. The statement of financial position (also known as balance sheet) reports the financial position of a company at a certain point in time, while the statement of comprehensive income (also known as income statement) reports the company's revenue, expenses, gains, and losses over a period of time. Therefore, only option B is the correct answer.

The Accounting Report That Is Specifically Designed to Answer the Question