The statement of cash flows reflects the revenues actually earned by the business,regardless of whether cash has been collected.

Question

Quizplus · Accepted Answer

The statement of cash flows reflects the cash received and paid out during a given period, not just the revenues earned. It provides information about the actual cash inflows and outflows of a business, including both operating and non-operating activities. Therefore, the statement of cash flows does not reflect revenues that have not been collected yet.

The Statement of Cash Flows Reflects the Revenues Actually Earned