Question

The primary purpose of the statement of cash flows is to report

a) A company's investing transactions
b) A company's financing transactions
c) Information about cash receipts and cash payments of a company
d) The net increase or decrease in cash

Answer 1

The primary purpose of the statement of cash flows is to report information about cash receipts and cash payments of a company.

Step-by-step explanation:

The primary purpose of the statement of cash flows is to report information about cash receipts and cash payments of a company. It provides a summary of how cash has been generated and used by a company during a specific period of time. The statement of cash flows categorizes cash flows into three main sections: operating activities, investing activities, and financing activities.