What does a funds-flow statement measure?
A)Exchange gains/losses arising from the income statement
B)Exchange gains/losses arising from monetary assets and liabilities
C)Exchange gains/losses arising from non-monetary assets and liabilities
D)Exchange gains/losses arising from financing instruments

Question

Quizplus · Accepted Answer

A funds-flow statement measures the movement of cash and cash equivalents in and out of a company, including exchange gains and losses arising from monetary assets and liabilities. It shows the sources and uses of funds during a specific period and helps in analyzing the company's liquidity, solvency, and financial position.

What Does a Funds-Flow Statement Measure