Question

The statement of cash flows is:

a. A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.
b. A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.
c. A financial statement that presents information about changes in equity during a period.
d. Another name for the statement of financial position.
e. A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

Answer 1

b. A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.

Step-by-step explanation:

Cash Flow Statement is part of financial statements, which is prepared to show the cash flows, for the operating period that is each financial year,

Further it differentiates transactions in three categories

Operating, Investing and Financing, each category depicts the inflow and outflow separately in the cash flow statement, it further tallies the balance of cash in hand as on the closing day of the period.

Therefore, correct option is

b. A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.