Which of the following is true of the statement of cash flows?
A)It indicates when long-term debt will mature.
B)It reports on the qualitative behavior of the company's performance.
C)It covers a specific span of time the same as the income statement.
D)It shows how the profits or losses of the company were generated.

Question

Quizplus · Accepted Answer

The statement of cash flows covers a specific span of time, just like the income statement. Option A is incorrect because the maturity of long-term debt is reported on the balance sheet. Option B is incorrect because the statement of cash flows focuses on the company's cash inflows and outflows, rather than qualitative behavior. Option D is incorrect because the income statement shows profits or losses and how they were generated, not the statement of cash flows.

Which of the Following Is True of the Statement of Cash