Scenario - Brininger Enterprises Rapid City, South Dakota has been home to Brininger Enterprises since 1984. This company is recognized around the world for its superior cutlery and currently ranks as number three within the industry. In 2011, Brininger Enterprises recorded gross sales of over sixteen million dollars. From its gross sales, the company claimed net profits of four million dollars. Brininger Enterprises is quite proud of its performance. It realizes the company's financial records truly show this organization is doing something right. Brininger Enterprises maintains accurate and thorough accounting records. Which piece of the company's accounting records would be needed to identify what cash monies were received and what cash was paid out by the company?

Question

Scenario - Brininger Enterprises Rapid City, South Dakota has been home to Brininger Enterprises since 1984.  This company is recognized around the world for its superior cutlery and currently ranks as number three within the industry.  In 2011, Brininger Enterprises recorded gross sales of over sixteen million dollars.  From its gross sales, the company claimed net profits of four million dollars. Brininger Enterprises is quite proud of its performance.  It realizes the company's financial records truly show this organization is doing something right. Brininger Enterprises maintains accurate and thorough accounting records.  Which piece of the company's accounting records would be needed to identify what cash monies were received and what cash was paid out by the company?

Quizplus · Accepted Answer

The statement of cash flows is the accounting record that shows the cash inflows and outflows of a company during a particular period. It provides a summary of the company's cash transactions and helps in identifying the sources and uses of cash. Therefore, to identify the cash monies received and paid out by Brininger Enterprises, the statement of cash flows is needed.

Scenario - Brininger Enterprises Rapid City, South Dakota Has Been