Asked by Vicky Geurinckx on Jul 17, 2024
Verified
The statement of cash flows
A) must be prepared on a daily basis.
B) summarizes the operating financing and investing activities of an entity.
C) is another name for the income statement.
D) is a special section of the income statement.
Operating Financing
Refers to the process of planning and managing the day-to-day financial operations of a company, including sourcing and utilizing funds.
Investing Activities
Financial activities related to the acquisition or disposal of long-term assets and investments not included in cash equivalents.
Statement of Cash Flows
An accounting report detailing the impact of variations in balance sheet accounts and earnings on cash and cash equivalents, categorizing the analysis among operating, investing, and financing activities.
- Understand the purpose and structure of the statement of cash flows.
Verified Answer
JT
Joana TrinidadJul 18, 2024
Final Answer :
B
Explanation :
The statement of cash flows summarizes the operating, financing, and investing activities of an entity during a given period of time. It is a separate statement from the income statement and is not prepared on a daily basis.
Learning Objectives
- Understand the purpose and structure of the statement of cash flows.