Which of the following statements about the statement of cash flows is not correct?
A)GAAP requires every company to report a statement of cash flows.
B)The statement of cash flows is contained in the notes to the financial statements.
C)The statement of cash flows is needed because the income statement and balance sheet do not provide adequate information about the changes in cash.
D)The statement of cash flows provides information about how each major type of business activity causes a company's cash to change.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about the changes in cash from major business activities that is not contained in the balance sheet or income statement.GAAP requires every company to report a statement of cash flows.That statement would not be set forth in the notes to the financial statements.

Which of the Following Statements About the Statement of Cash