Which of the following statements accurately describes the cash flow statement?
A)It shows the link between profit and earnings per share.
B)It indicates when long-term debt will mature.
C)It shows the relative proportion of debt and assets.
D)It shows the link between accrual-based income and the cash reported on the balance sheet.

Question

Quizplus · Accepted Answer

The cash flow statement shows the link between accrual-based income (reported on the income statement) and the cash reported on the balance sheet. It provides information about how much cash was generated or used during the period and from which activities (operating, investing, financing) the cash inflows and outflows occurred. Options A, B, and C are not accurate descriptions of the cash flow statement.

Which of the Following Statements Accurately Describes the Cash Flow