Asked by Shyasha Booker on Jul 19, 2024
Verified
The financial statement that identifies a company's cash receipts and cash payments over a period of time is the:
A) Statement of financial position.
B) Statement of cash flows.
C) Balance sheet.
D) Income statement.
E) Statement of changes in stockholders' equity.
Statement of Cash Flows
A document that outlines the effects of changes in accounts on the balance sheet and revenue on cash and cash equivalents, categorized by operating, investing, and financing actions.
Financial Statement
Documents that provide an overview of a company’s financial condition, including balance sheet, income statement, and cash flow statement.
Cash Receipts
The collection of cash during a specific period, often recorded in financial accounting to track the inflow of cash.
- Absorb the fundamental parts and goals of key financial statements, encompassing the balance sheet, income statement, statement of retained earnings, and cash flow statement.
Verified Answer
PP
Prishen Pillay SamooJul 20, 2024
Final Answer :
B
Explanation :
The statement that identifies a company's cash receipts and cash payments over a period of time is the statement of cash flows. The other options are different financial statements that serve different purposes - the statement of financial position (also known as the balance sheet) shows a company's assets, liabilities, and equity at a specific point in time, the income statement shows a company's revenues and expenses over a period of time, and the statement of changes in stockholders' equity shows changes in a company's equity accounts.
Learning Objectives
- Absorb the fundamental parts and goals of key financial statements, encompassing the balance sheet, income statement, statement of retained earnings, and cash flow statement.