A statement of cash flows:
A) is prepared at the option of management
B) may be combined with the balance sheet
C) is a basic financial statement required for publicly held companies
D) may be combined with the statement of retained earnings at the option of management

Question

Quizplus · Accepted Answer

A statement of cash flows is a basic financial statement required for publicly held companies. Option A is incorrect because it is a required statement, not optional. Option B is incorrect because the statement of cash flows cannot be combined with the balance sheet. Option D is incorrect because the statement of retained earnings is a separate statement and cannot be combined with the statement of cash flows.

A Statement of Cash Flows