Which financial statement reports cash flow information?

Which financial statement reports cash flow information?

• A. Balance sheet
• B. Income statement
• C. Statement of cash flow
• D. Notes

Answer: (C)

The main concept is identifying which statement shows how cash moves in and out of the business. The statement of cash flows presents the actual cash receipts and payments during the period, broken into operating, investing, and financing activities. It shows net cash provided or used and explains how cash balances change from the beginning to the end of the period, often reconciling net income to cash from operations. By contrast, the balance sheet lists cash as an asset at a point in time, and the income statement reports performance on an accrual basis, while notes provide supplementary details. So, the cash flow information is reported in the statement of cash flows.

The main concept is identifying which statement shows how cash moves in and out of the business. The statement of cash flows presents the actual cash receipts and payments during the period, broken into operating, investing, and financing activities. It shows net cash provided or used and explains how cash balances change from the beginning to the end of the period, often reconciling net income to cash from operations. By contrast, the balance sheet lists cash as an asset at a point in time, and the income statement reports performance on an accrual basis, while notes provide supplementary details. So, the cash flow information is reported in the statement of cash flows.