Creating a cash flow statement requires that you determine
A) all cash coming in for the period.
B) liabilities.
C) cash used for expenses.
D) A and C are both correct.

Question

Quizplus · Accepted Answer

A cash flow statement reflects the cash inflows and outflows from operating activities, thus it includes all cash coming in (A) and cash used for expenses (C). Liabilities (B) are part of the balance sheet, not the cash flow statement.

Creating a Cash Flow Statement Requires That You Determine