Which of the following statements is true about the information in a statement of cash flows?
A)The statement of cash flows contains information about stock splits and stock dividends distributed by the company.
B)The statement of cash flows contains information about the business's ability to generate positive cash flows in future periods.
C)The statement of cash flows contains information about the business's percentage change in each item of revenue and expense.
D)The statement of cash flows contains information about the differences between net income and additions to retained earnings.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about a company's cash receipts and cash payments during a period, which helps in assessing the company's ability to generate positive future cash flows.

Which of the Following Statements Is True About the Information