The statement of cash flows does which of the following?
A)explains what caused profit during the accounting period.
B)identifies all assets held at the end of the accounting period by type and amount.
C)explains that the trial balance is in balance.
D)explains all of the sources and uses of cash during the accounting period.

Question

Quizplus · Accepted Answer

The statement of cash flows explains the sources and uses of cash during the accounting period. Option A is incorrect because explaining profit is done in the income statement. Option B is incorrect because the balance sheet identifies assets held at the end of the period. Option C is incorrect because the explanation of the trial balance is not included in statement of cash flows.

The Statement of Cash Flows Does Which of the Following