Which of the following is TRUE of the statement of cash flows?
A) It indicates when long-term debt will mature.
B) It reports on the qualitative behavior of the company's performance.
C) It covers a span of time and is dated the same as the income statement.
D) It shows how the profits or losses of the company were generated.

Question

Quizplus · Accepted Answer

The statement of cash flows covers a specific period of time, usually a year, and is dated the same as the income statement. Answer A is incorrect because the maturity of long-term debt is not reported on the statement of cash flows, but rather on the balance sheet. Answer B is incorrect because the statement of cash flows focuses on quantitative information, such as cash inflows and outflows, rather than qualitative information. Answer D is also incorrect because the statement of cash flows does not show how profits or losses were generated – that information is reported on the income statement.

Which of the Following Is TRUE of the Statement of Cash