All publicly traded companies must include a statement of cash flows in their financial reports to shareholders.

Question

Quizplus · Accepted Answer

This statement is true. According to generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), all publicly traded companies must prepare and include a statement of cash flows in their financial reports to shareholders. The statement of cash flows is a financial statement that shows how a company generated and used its cash during a specified period, and it helps investors and creditors understand a company's liquidity, solvency, and financial health.

All Publicly Traded Companies Must Include a Statement of Cash