Which of the following questions would not be answered by the statement of cash flows? a....

Which of the following questions would not be answered by the statement of cash flows?

a. Where did the cash come from during the period?

b. What was the cash used for during the period?

c. Were all the cash expenditures of benefit to the company during the period?

d. What was the change in the cash balance during the period?

Expert Solution

Answer is option C) Were all the cash expenditures of benefit to the company during the period?

Cash flow statement(CFS) is a statement showing cash inflow and out flow during the period.

CFS has three parts

1. CAsh flow from operating activities

2. cash flow from investing activities

3.cash flow from financing activities

CFS shows the Where did the cash come from during the period, Where did the cash come from during the period, What was the change in the cash balance during the period.

CFS is not to helpful to understand whether the transaction is benefit to the company or not

ekkarill92 answered 2 years ago

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