The primary purpose of the statement of cash flows is to provide information
A)about a company's cash receipts and cash payments during an accounting period.
B)about a company's investing and financing activities during an accounting period.
C)regarding a company's financial position at the end of an accounting period.
D)regarding the results of operations for a period of time.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about a company's cash receipts and cash payments during an accounting period. It categorizes cash inflows and outflows into operating, investing, and financing activities, which helps users understand how a company generates and uses its cash. It also reconciles the beginning and ending cash balances to show changes in cash position during the period.

The Primary Purpose of the Statement of Cash Flows Is