Question

Which of the following is true of the statement of cash flows?

A. It shows how the profits or losses of the company were generated. B. It reports
B.It reports on the qualitative behavior of the company's performance. when
C.It indicates when long-term debt will mature.
D. It covers a span of time and is dated the same as the income statement

Answer 1

The statement of cash flows provides information about the cash inflows and outflows of a company over a specific period of time.

Step-by-step explanation:

The statement of cash flows is a financial statement that provides information about the cash inflows and outflows of a company over a specific period of time. It is divided into three main sections: operating activities, investing activities, and financing activities.

A. It does not show how the profits or losses of the company were generated, but rather focuses on the cash flows associated with those profits or losses.

B. It does not report on the qualitative behavior of the company's performance, but rather provides quantitative information about the cash flows.

C. It does not indicate when long-term debt will mature, as that information would typically be found in the notes to the financial statements.

D. It covers a span of time, usually a year, but is not necessarily dated the same as the income statement.