The statement of cash flows ________.
A) shows the financial position of a firm at a given point of time.
B) summarizes all the purchase and sale of fixed assets and raw materials
C) provides insight into a firm's operating, investment, and financing cash flows
D) classifies a firm's cash flows as operating, investing, financing, and other activities

Question

Quizplus · Accepted Answer

DThe statement of cash flows provides insight into a firm's cash flows from operating, investing, and financing activities, but it does not classify cash flows as "other activities." It specifically details how cash is generated and used in these three main categories, helping users understand the company's liquidity and financial flexibility.

The Statement of Cash Flows ________