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

Question

Quizplus · Accepted Answer

The statement of cash flows reports the cash inflows and outflows for an accounting period, which includes operating, investing, and financing activities. It does not report on assets, liabilities, or equity specifically, although changes in cash can affect these items indirectly. It also does not report on revenues, expenses, gains, losses, net income, or dividends specifically, although it may provide information about cash payments related to these items. The statement of cash flows is primarily concerned with tracking the movement of cash in a business, which is a key indicator of its liquidity and ability to meet financial obligations.

The Statement of Cash Flows Reports