A statement of cash flows is a forecast of net cash flows from operating,investing and financing activities.

Question

Quizplus · Accepted Answer

A statement of cash flows is not a forecast, but rather a report of actual net cash flows that occurred during a specific period of time. It reflects the inflow and outflow of cash from operating activities (such as sales and expenses), investing activities (such as buying or selling assets), and financing activities (such as issuing or repaying debt or issuing or repurchasing stock).

A Statement of Cash Flows Is a Forecast of Net