Zack Co.reported a net loss of $50,000 for 2017,yet its cash balance increased during the year.Which financial statement should Zack's management refer to for an explanation of this situation?
A)Balance sheet
B)Income statement
C)Statement of retained earnings
D)Statement of cash flows

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about the sources and uses of cash during a given period, which can give insight into why the cash balance increased despite a net loss reported on the income statement.

Zack CoReported a Net Loss of $50,000 for 2017,yet Its Cash