The statement of cash flows ________.
A)compares costs and expenses against a firm's net profits
B)is built on the basic accounting equation: Assets = Liabilities + Capital
C)shows what assets the business owns and what claims creditors and owners have against those assets
D)shows changes in working capital by listing sources and uses of funds

Question

Quizplus · Accepted Answer

The statement of cash flows shows changes in working capital by listing sources and uses of funds, such as cash inflows and outflows from operating, investing, and financing activities. A compares costs and expenses against net profits is the income statement. B is the balance sheet, which shows what assets the business owns and what claims creditors and owners have against those assets.

The Statement of Cash Flows ________