Question

Which of the following statements regarding the statement of cash flows are correct?

Multiple select question.
a.Reports cash disbursements
b.The final financial statement that is typically prepared
c.It is an optional financial statement
d.The financial statement that is typically prepared first
Reports cash receipts

Answer 1

The statement of cash flows is a financial statement that reports the cash receipts and cash disbursements of a company. It is typically prepared after the income statement and balance sheet and is mandatory.

Step-by-step explanation:

The statement of cash flows is a financial statement that reports the cash receipts and cash disbursements of a company. It is typically prepared after the income statement and balance sheet. The statement of cash flows is mandatory and is used to provide information about the sources and uses of cash by a company.