The financial statement that identifies where a company's cash came from and where it went during the period is the:
A) Statement of financial position.
B) Statement of cash flows.
C) Balance sheet.
D) Income statement.
E) Statement of changes in owner's equity.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on the sources of cash inflows and the uses of cash outflows during the period, including operating activities, investing activities, and financing activities. This statement is important to assess a company's liquidity and ability to generate cash, and it complements the balance sheet and income statement. The statement of financial position (or balance sheet) shows the company's assets, liabilities, and equity at a specific point in time, while the income statement shows the revenues, expenses, and profit or Loss during the period. The statement of changes in owner's equity shows the changes in equity accounts, such as retained earnings and contributed capital, but it does not provide information on cash flows.

The Financial Statement That Identifies Where a Company's Cash Came