Which of the following is NOT a true statement about the statement of cash flows?
A) It shows where cash came from and how it was spent.
B) It reports why cash increased or decreased.
C) It covers a specific span of time the same as the income statement.
D) It shows how the profits or losses of the company were generated.

Question

Quizplus · Accepted Answer

The statement of cash flows does not show how the profits or losses of a company were generated. That information is included in the income statement. The statement of cash flows focuses on the cash inflows and outflows of the company.

Which of the Following Is NOT a True Statement About