The financial statement that reports an entity's cash receipts and cash payments during the period is the:
A) cash flow statement
B) statement of financial position
C) statement of retained earnings
D) statement of income

Question

Quizplus · Accepted Answer

The cash flow statement is specifically designed to report an entity's cash inflows and outflows during a given period. It provides information on the sources and uses of cash, and breaks down cash flows into operating, investing, and financing activities. The other options (B, C, and D) report on different aspects of an entity's financial performance, but do not focus exclusively on cash flows.

The Financial Statement That Reports an Entity's Cash Receipts and Cash