Question

The statement of cash flows will not report the Group of answer choices amount of checks outstanding at the end of the period. sources of cash in the current period. uses of cash in the current period. change in the cash balance for the current period.

Answer 1

Answer: amount of checks outstanding at the end of the period.

Step-by-step explanation:

Accounting uses the accrual based system which means that revenue and costs are only recognized when they occur. This means that a company might get revenue in a period but would not have the actual cash in that period to represent that revenue.

The statement of cash flows is created to see the actual amount of cash that a company has instead of revenue or expenses based on the accrual basis of accounting.

That being said, it only includes cash based transactions and will not include checks outstanding at the end of the month.