The statement of cash flows reports:
A) Assets,liabilities,and owners' equity.
B) Cash inflows and outflows for an accounting period.
C) Revenues,gains,expenses,and losses.
D) Owners' equity,net income,and dividends.
E) Cash inflows and outflows for an accounting period and owners' equity,net income,and dividends.

Question

Quizplus · Accepted Answer

The statement of cash flows reports the cash inflows and outflows for an accounting period, which provides valuable information about a company's liquidity and ability to generate cash. It does not report assets, liabilities, owners' equity, revenues, gains, expenses, or losses directly. However, the changes in cash balances can indirectly reflect changes in these other items over time. The statement of cash flows also does not report net income or dividends directly, although it may reconcile to the net income and changes in owners' equity reported in the income statement and balance sheet.

The Statement of Cash Flows Reports