The Statement of Cash Flows:

Question

The Statement of Cash Flows:

 

A. lists all cash flows over the life of a company.

 

B. breaks down all cash transactions into Investing and Financing cash flows.

 

C. shows that the change in total cash from one year to the next is equal to the net operating, investing, and financing cash flows.

 

D. has two methods for Investing Cash Flows - direct and indirect.

Answer 1

C

 

A. The statement of cash flows covers a period of time, such as one year.

B. Operating activities are also included.

D. The direct and indirect methods are different ways of reporting cash from operations.