Question

The statement of cash flows presents:

A. an explanation of the changes in the beginning and ending balances of stockholders’ equity.
B. a comparison of the benefits and the sacrifices a company experiences from its operations.
C. information in three categories including operating, investing, and financial activities.
D. a list of a company’s assets and the sources of those assets.

Answer 1

Answer:

Option C is correct.

Explanation:

The statement of cash flow presents us the information about the cash, where the cash was invested including how much cash we have earned by investing in projects, how much cash the operations has created and how much cash has been created from the financing activities. This statement tells us about the origin of the cash and where the company is spending it.