A statement of cash flows should be issued by a profit-oriented business
A) As an alternative to the statement of income and retained earnings
B) Only if the business classifies its assets and liabilities as current and noncurrent
C) Only when two-year comparative balance sheets are not issued
D) Whenever a balance sheet and a statement of income and retained earnings are issued

Question

Quizplus · Accepted Answer

A statement of cash flows is a required financial statement that should be issued by a profit-oriented business whenever a balance sheet and a statement of income and retained earnings are issued. It presents cash inflows and outflows from operating, investing, and financing activities, providing valuable information about a company's liquidity and its ability to generate cash.

A Statement of Cash Flows Should Be Issued by a Profit-Oriented