Multiple Choice
Which of the following transactions is NOT reported in the statement of cash flows?
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13. Statement of Cash Flows
Introduction to the Statement of Cash Flows
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which financial statement provides details about the flow of funds from operating, investing, and financing activities?
A
Statement of Retained Earnings
B
Income Statement
C
Balance Sheet
D
Statement of Cash Flows
Verified step by step guidance1
Understand the purpose of each financial statement: The Statement of Retained Earnings shows changes in retained earnings over a period, the Income Statement reports revenues and expenses, the Balance Sheet provides a snapshot of assets, liabilities, and equity, and the Statement of Cash Flows details cash inflows and outflows.
Recognize that the Statement of Cash Flows is specifically designed to provide information about cash movements categorized into operating, investing, and financing activities.
Operating activities include cash flows from the core business operations, such as receipts from customers and payments to suppliers.
Investing activities involve cash flows related to the acquisition or disposal of long-term assets, such as purchasing equipment or selling investments.
Financing activities include cash flows from transactions with the company's owners and creditors, such as issuing shares or repaying loans.
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