The ﬁnancial statement that summarizes the sources and uses of cash over a speciﬁed period of time is the:
A) Statement of comprehensive income.
B) Statement of ﬁnancial position.
C) Tax reconciliation statement.
D) Statement of cash ﬂows.
E) Statement of operating position.

Question

Quizplus · Accepted Answer

The statement that summarizes the sources and uses of cash over a specified period of time is the statement of cash flows. Option A is incorrect as it summarizes income and expenses, not cash flows. Option B is incorrect as it shows the financial position of the company, not the sources and uses of cash. Option C is incorrect as it shows the differences between accounting income and taxable income. Option E is not a valid financial statement.

The ﬁNancial Statement That Summarizes the Sources and Uses of Cash