Multiple Choice
Which of the following occurs when a company goes public?
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13. Statement of Cash Flows
Introduction to the Statement of Cash Flows
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Which of the following can be found on the statement of cash flows?
A
Total assets at year-end
B
Cash flows from operating activities
C
Net income per share
D
Retained earnings balance
Verified step by step guidance1
Understand the purpose of the statement of cash flows: It provides information about a company's cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities.
Identify the key components of the statement of cash flows: These include cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.
Analyze the options provided in the question: Total assets at year-end, net income per share, and retained earnings balance are not directly reported on the statement of cash flows. Instead, they are found on the balance sheet or income statement.
Recognize that 'Cash flows from operating activities' is a specific section of the statement of cash flows. It details cash generated or used by the company's core business operations.
Conclude that the correct answer is 'Cash flows from operating activities,' as it is the only option directly related to the statement of cash flows.
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