Which of the following statements is true about information in a statement of cash flows?
A)The statement of cash flows is one of the required financial statements for publicly-held companies.
B)The statement of cash flows is prepared at the option of management.
C)The statement of cash flows is combined with the income statement.
D)The statement of cash flows is not completed when an income statement is prepared.

Question

Quizplus · Accepted Answer

The statement of cash flows is one of the required financial statements for publicly-held companies. It provides information about the cash flows of the company, including operating, investing, and financing activities, and is used by investors and analysts to evaluate the liquidity and solvency of the company. The statement of cash flows is not optional and must be included in the company's annual report.

Which of the Following Statements Is True About Information in a Statement