The statement of cash flows helps address questions such as
A) How is the increase in investments financed?
B) What is the source of cash for new property, plant and equipment?
C) How much cash is generated from or used in operations?
D) Why is cash flow from operations different from income?
E) All of these.

Question

Quizplus · Accepted Answer

The statement of cash flows addresses all of these questions. It reports the sources and uses of cash for investing activities (A), financing activities (B), and operations (C). It also explains why cash flow from operations may be different from income due to non-cash transactions (D).

The Statement of Cash Flows Helps Address Questions Such as