An Income statement will give the answer to the question

Question

An Income statement will give the answer to the question - "where did all the cash get used during this month?"

Quizplus · Accepted Answer

An Income statement shows the revenue, expenses and net income (or loss) of a business over a specific period of time. It does not provide information on the use of cash during that period. A cash flow statement is the financial statement that shows the inflows and outflows of cash during a specific period of time.