Changes in financial position are reflected on the:
A)Balance sheet
B)Income statement
C)Retained earnings statement
D)Cash flow statement

Question

Quizplus · Accepted Answer

Changes in financial position are reflected on the cash flow statement. This statement shows how cash flows in and out of the business during a specific period of time, providing insight into the company's liquidity and solvency. The balance sheet shows the company's financial position at a specific point in time, the income statement shows the company's financial performance over a period of time, and the retained earnings statement shows the changes in retained earnings over a period of time.

Changes in Financial Position Are Reflected on The