Zack Co.reported a net loss of $50,000 for 2016, yet its cash balance increased during the year.Which financial statement should Zack's management refer to for an explanation of this situation?
A) Balance sheet
B) Income statement
C) Statement of Retained Earnings
D) Statement of Cash Flows

Question

Quizplus · Accepted Answer

The Statement of Cash Flows shows the sources and uses of cash during a period of time, including cash flows from operating activities, investing activities, and financing activities. It will show how the cash balance increased despite a net loss by analyzing the changes in cash flows.

Zack CoReported a Net Loss of $50,000 for 2016, Yet Its