What does the statement of cash flows show about a firm?
A) a net profit or loss
B) the current assets and current liabilities that are likely to result in cash flows over the next accounting period
C) sources and uses of cash that result from its operating, investing, and financing activities
D) a schedule of payments for the debts that come due in the next year

Question

Quizplus · Accepted Answer

The statement of cash flows shows the sources and uses of cash that result from a firm's operating, investing, and financing activities, providing an overview of the company's cash flows for the accounting period. It does not show actual net profits or losses, current assets and liabilities, or a schedule of debt payments.

What Does the Statement of Cash Flows Show About a Firm