The statement of cash flows reports why cash increased or decreased during the period.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on how cash balances changed during the period by reporting the sources and uses of cash, including operating, investing, and financing activities. This allows users to understand the cash flow situation of a company and can help in assessing its ability to meet future obligations, invest in growth opportunities, and distribute cash to shareholders.

The Statement of Cash Flows Reports Why Cash Increased or Decreased