The statement of cash flow:
A)compares costs and expenses against a firm's sales.
B)is built on the basic accounting equation: Assets = Liabilities + Capital.
C)shows what assets the business owns and what claims creditors and owners have against those assets.
D)shows changes in working capital by listing sources and uses of funds.

Question

Quizplus · Accepted Answer

The statement of cash flow shows changes in working capital by listing sources and uses of funds. It tracks the inflow and outflow of cash, providing a detailed understanding of how a company manages its cash position. Choice A describes the income statement, while choice B describes the balance sheet, and choice C describes the statement of financial position.

The Statement of Cash Flow