The statement of cash flows a.ties the balance sheet to the statement of retaine

Question

The statement of cash flows

a.ties the balance sheet to the statement of retained earnings.

b.along with the balance sheet and income statement is prepared on the accrual basis.

c.along with the balance sheet is used to analyze liquidity.

d.along with the balance sheet and statement of retained earnings is dated as of a specific year end date.

The primary purpose of the statement of cash flows is to provide information about

a.the investing and financing activities of the company.

b.the cash inflows and outflows of the company.

c.the profitability of the company.

d.the financial position of the company.

Which of the following statements regarding the statement of cash flows is true?

a.The statement of cash flows is an optional financial statement.

b.The statement of cash flows analyzes only the changes in current assets and current liabilities.

c.The statement of cash flows is organized as cash inflows less cash outflows.

d.The statement of cash flows analyzes the changes in consecutive balance sheets in conjunction with the income statement.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars The statement of cash flows d.along with the balance sheet and statement of retained earnings is dated as of a specific year end date. Q2 The primary purpose of the statement of cash flows is to provide information about b.the cash inflows and outflows of the company Q3 d.The statement of cash flows analyzes the changes in consecutive balance sheets in conjunction with the income statement.

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