In addition to preparing the income statement, balance sheet, and statement of retained earnings, which of the following is also a required financial statement?
A) Statement of Cash Inflows and Outflows
B) Statement of Cash Flows
C) Cash Reserve Statement
D) Cash Reconciliation Statement

Question

Quizplus · Accepted Answer

The statement of cash flows is a required financial statement that reports on the cash inflows and outflows of a company during a specific period of time. This statement is important for understanding a company's liquidity and ability to generate cash, which is critical for various stakeholders including investors, creditors, and management.

In Addition to Preparing the Income Statement, Balance Sheet, and Statement