The statement of cash flows:
A)serves as a replacement for the income statement and balance sheet.
B)explains the change in the cash balance at one point in time.
C)explains the change in the cash balance for one period of time.
D)both A and B above.

Question

Quizplus · Accepted Answer

The statement of cash flows explains the change in the cash balance for one period of time, typically during a fiscal year. It does not replace the income statement or balance sheet, but rather provides additional information on how cash was generated and used during the reporting period.

The Statement of Cash Flows