The primary purpose of the statement of cash flows is to report
A) a company's investing transactions.
B) a company's financing transactions.
C) information about cash receipts and cash payments of a company.
D) the net increase or decrease in cash.

Question

Quizplus · Accepted Answer

The statement of cash flows reports the cash receipts and cash payments of a company, showing how the company generated and used its cash during a given period of time. While it does provide information about investing and financing transactions, its primary purpose is to report the changes in cash during the period.

The Primary Purpose of the Statement of Cash Flows Is