A statement of cash flow's purpose is to:
A)show the revenue earned.
B)show the profits that were generated.
C)show the expenses that were incurred.
D)show how cash was generated and used during an accounting period.

Question

Quizplus · Accepted Answer

The purpose of a statement of cash flow is to show how cash was generated and used during an accounting period, including operating activities, investing activities, and financing activities. It does not focus on revenue earned or expenses incurred, though these items may be included in the statement. Additionally, while profits may be a factor in the statement, they are not the primary focus.

A Statement of Cash Flow's Purpose Is To