A statement of cash flows is generated to show:
A) the revenues the company has earned.
B) the expenses the company incurred during the time period.
C) the inflow and outflow of cash during the time period.
D) how profits were generated.

Question

Quizplus · Accepted Answer

A statement of cash flows shows the inflow and outflow of cash during a time period, including operating, investing, and financing activities. It does not show revenues, expenses or how profits were generated, as these are shown on an income statement.

A Statement of Cash Flows Is Generated to Show