The statement of cash flows categorizes the sources and uses of the net cash flow generated by the company during the year.

Question

Quizplus · Accepted Answer

The statement of cash flows provides a detailed breakdown of the sources and uses of cash generated by a company during a given period. It is classified into three categories: operating activities, investing activities, and financing activities. This statement is an important tool for investors and analysts to assess the liquidity and cash flow efficiency of a company.

The Statement of Cash Flows Categorizes the Sources and Uses