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Which financial statement provides information about a company's gross receipts and gross payments for a specified period of time?

(A) Income statement
(B) Balance sheet
(C) Statement of cash flows
(D) Statement of owner's equity

User Avernet
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1 Answer

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Final answer:

The Statement of cash flows is the financial statement that details a company's gross receipts and gross payments over a period, showing actual cash inflows and outflows. The financial statement that provides information about a company's gross receipts and gross payments for a specified period of time is the Statement of cash flows (C).

Step-by-step explanation:

The financial statement that provides information about a company's gross receipts and gross payments for a specified period of time is the Statement of cash flows (C). The income statement shows revenues and expenses to calculate net income. The balance sheet provides financial information at a point in time, showing assets, liabilities, and equity. The statement of owner's equity shows changes in equity. However, the statement of cash flows details the actual cash inflow and outflow from operating, investing, and financing activities, which includes receipts from sales and payments for expenses, describing the company's cash position over time.

The financial statement that provides information about a company's gross receipts and gross payments for a specified period of time is the Income statement.

The income statement, also known as the profit and loss statement, shows how much revenue a company generated and how much expenses it incurred during a specific period, typically a year or quarter.

Some examples of gross receipts include sales revenue, fees earned, and interest income, while gross payments include expenses such as salaries, rent, and utilities.

User Kemi
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