Which of the basic financial statements is best used to answer the questions "Where did the company's money come from and how was it spent over the preceding year?"
A) Balance sheet
B) Statement of shareholder's equity
C) Income statement
D) Cash flow statement

Question

Quizplus · Accepted Answer

The cash flow statement tracks the inflow and outflow of cash over a specific period, providing a clear picture of where the company's money came from and how it was spent. This statement includes operating activities, investing activities, and financing activities. The other financial statements do not provide this level of detail on cash flow.

Which of the Basic Financial Statements Is Best Used to Answer