Which of the following would indicate how much actual cash the firm has on hand?
A) income statement
B) balance sheet
C) statement of cash flows
D) None of these are correct

Question

Quizplus · Accepted Answer

The statement of cash flows shows the cash inflows and outflows for a specific period of time and therefore indicates how much actual cash the firm has on hand. The income statement shows the revenues and expenses incurred during a period of time, while the balance sheet shows the assets, liabilities, and equity of the firm at a given point in time.

Which of the Following Would Indicate How Much Actual Cash