Which of the following financial statements is used to report cash receipts for services provided?
A) income statement
B) balance sheet
C) statement of retained earnings
D) statement of cash flows

Question

Quizplus · Accepted Answer

The statement of cash flows is the financial statement that reports cash receipts and payments during a particular period. This statement shows the inflow and outflow of cash from operating, investing, and financing activities. Therefore, it is the best choice for reporting cash receipts for services provided. The income statement reports revenues and expenses incurred during a period to determine net income, the balance sheet reports a company's assets, liabilities, and equity at a certain point in time, and the statement of retained earnings shows the change in a company's retained earnings over a particular period.

Which of the Following Financial Statements Is Used to Report