What does the statement of cash flows show about a company?
A) money coming in and money going out
B) a schedule of payments for the debts that come due in the next year
C) a net profit or loss
D) the current assets and current liabilities that are likely to result in cash flows over the next accounting period

Question

Quizplus · Accepted Answer

The statement of cash flows shows the cash inflows and outflows of a company during a particular accounting period, including operating, investing, and financing activities.

Answer: B
 The statement of cash flows does not typically include a schedule of payments for debts due in the next year but focuses on cash flows from operating, investing, and financing activities.

Answer: C 
 While the statement of cash flows provides information about a company's cash flows, it does not show net profit or loss. The income statement provides information about a company's net profit or loss.

Answer: D
 The statement of cash flows does not show current assets and liabilities that are likely to result in cash flows over the next accounting period. This information is usually found in the balance sheet.

What Does the Statement of Cash Flows Show About a Company