Which of the following presents a summary of the changes in a firm's balance sheet from the beginning of an accounting period to the end of an accounting period?
A) The statement of retained earnings
B) The statement of working capital
C) The statement of cash flows
D) The statement of net worth

Question

Quizplus · Accepted Answer

The statement of cash flows presents a summary of the changes in a firm's balance sheet from the beginning of an accounting period to the end of an accounting period by categorizing cash inflows and outflows into three sections: operating activities, investing activities, and financing activities. The statement of retained earnings shows changes in the retained earnings account specifically, not the entire balance sheet. The statement of working capital is not a commonly used financial statement. The statement of net worth is not a standard financial statement and is not commonly used in accounting.

Which of the Following Presents a Summary of the Changes