If stockholders wanted to know how money flowed into and out of the company, what financial statement would they use?
A) income statement
B) statement of cash flows
C) balance sheet
D) none of these

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on how cash is generated and used by the company during a specific period of time. It shows the inflows and outflows of cash and provides information on operating, investing, and financing activities. This is the best financial statement for stockholders who want to know how money flows into and out of the company.

If Stockholders Wanted to Know How Money Flowed into and Out