27.6k views
4 votes
If a business owner wanted to know where her cash came from and where it went, she would need which financial statement?

a. Income Statement
b. Statement of Retained Earnings
c. Statement of Cash Flows
d. Balance Sheet

User Pmrotule
by
7.9k points

1 Answer

5 votes

Final answer:

The business owner would need the Statement of Cash Flows to track cash inflows and outflows, providing insights into the company's liquidity and financial management.

Step-by-step explanation:

If a business owner wants to know where her cash came from and where it went, the financial statement she would need is the Statement of Cash Flows. This financial statement provides a detailed breakdown of a company's cash inflows and outflows, categorized into three main activities: operating, investing, and financing. By reviewing the Statement of Cash Flows, the business owner can track the cash movement, understand the company's liquidity, and make informed decisions about managing cash in the future.

User Andrew Olney
by
7.3k points