Which of the following statements is true?

Question

Quizplus · Accepted Answer

The statement of cash flows reports the sources and uses of cash for a specific period, which is related to the beginning and ending balances of cash and cash equivalents reported on the balance sheet. A and C are incorrect because the statement of stockholders' equity reports changes in equity, which include dividend payments, and the treatment of dividends on the statement of cash flows depends on the type of dividend (cash or stock) and the classification of the activity (operating or financing). D is incorrect because net income is a component of stockholders' equity and is reported on both the income statement and the statement of stockholders' equity.

Which of the Following Statements Is True