Josh Co.reported a net loss of $30,000 for 2014,yet its cash balance increased during the year.Which financial statement should Josh's management refer to for an explanation of this situation?

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on the sources and uses of cash during a given period, which can explain how the cash balance increased despite the net loss reported in the income statement. The other financial statements, such as the balance sheet and statement of retained earnings, may not provide sufficient detail on the cash flows during the year.

Josh CoReported a Net Loss of $30,000 for 2014,yet Its Cash