A cash flow statement is generated to show:
A)the expenses the company incurred during the time period.
B)the inflow and outflow of cash during the time period.
C)how profits were generated.
D)the revenues the company has earned.

Question

Quizplus · Accepted Answer

A cash flow statement shows the inflow and outflow of cash during a specific time period. It helps to determine the liquidity of the company and its ability to meet its financial obligations. It includes cash from operating activities, investing activities, and financing activities, and helps identify any potential cash shortages or surpluses.

A Cash Flow Statement Is Generated to Show