The main purpose of the statement of cash flows is to:
A) provide information about the cash receipts and cash payments during a period.
B) provide information about the investing and financing activities during a period.
C) prove that revenues exceed expenses if there is a net income.
D) assist banking relationships.

Question

Quizplus · Accepted Answer

The main purpose of the statement of cash flows is to provide information about the cash receipts and cash payments during a period. It shows how much cash a company has generated and how it has been used.

The Main Purpose of the Statement of Cash Flows Is