Which of the following shows the cash flowing in and out of a firm through its operating, investing, and financing activities?
A) income statement
B) operating budget
C) retained earnings
D) statement of cash flows

Question

Quizplus · Accepted Answer

The statement of cash flows is the only financial statement that shows the cash flowing in and out of a firm through its operating, investing, and financing activities. The income statement shows the company's revenue and expenses, but does not provide information on cash flows. The operating budget is a projection of the company's expected revenues and expenses, not actual cash flows. Retained earnings are a part of the equity section of the balance sheet and do not show the company's cash flows.

Which of the Following Shows the Cash Flowing in and Out