Clean Sweep,Inc.started the month of June with $800 worth of cleaning supplies.During the month,Clean Sweep purchased $300 of supplies for cash.At June 30,$200 worth of supplies was unused.How will the company report these events on its statement of cash flows for the month of June?
A)The statement of cash flows will show cash paid for supplies of $(300).
B)The statement of cash flows will show supplies expense of $900.
C)The statement of cash flows will show supplies expense of $200.
D)This is a trick question.The statement of cash flows will not report anything about any of these events.

Question

Quizplus · Accepted Answer

The statement of cash flows only reports cash transactions. Clean Sweep, Inc. paid $300 for supplies in cash, which is the only event among those listed that affects the company's cash flow.