If a shareholder wanted to know how money flowed into and out of the company,which financial statement would the shareholder use?
A) income statement
B) statement of cash flows
C) balance sheet
D) statement of retained earnings

Question

Quizplus · Accepted Answer

The statement of cash flows tracks the flow of money in and out of the company, including operating activities, investing activities, and financing activities. It shows how much cash was generated or used during a certain period of time, and helps shareholders understand if the company has enough cash to pay its debts and invest in future growth. The income statement shows revenue and expenses, but doesn't necessarily indicate how much cash actually entered or left the company. The balance sheet and statement of retained earnings provide different types of financial information.

If a Shareholder Wanted to Know How Money Flowed into and Out