Which of the following financial statements shows a firm's financing activities (how funds were generated) and investment activities (how funds were used) over a particular period of time?
A)Balance sheet
B)Income statement
C)Statement of retained earnings
D)Statement of cash flows
E)Proxy statement

Question

Quizplus · Accepted Answer

The statement of cash flows shows a firm's financing activities and investment activities over a particular period of time. It breaks down the sources and uses of funds into three categories: operating activities, investing activities, and financing activities. This statement is important for investors and creditors because it provides insight into how the company is managing its cash flow and using its funds.

Which of the Following Financial Statements Shows a Firm's Financing