The statement of cash flowsa. summarizes the operating, financing, and investing activities of an entity. b. is another name for the income statement. c. is a special section of the income statement. d. must be prepared on a daily basis.

Question

Business

Alaina Cowan

1 June, 18:05

The statement of cash flowsa. summarizes the operating, financing, and investing activities of an entity. b. is another name for the income statement. c. is a special section of the income statement. d. must be prepared on a daily basis.

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Answers (2)

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Carolina Grimes · Answer 1

a. summarizes the operating, financing, and investing activities of an entity

Explanation:

The Cash flow statement is a statement that gives a summary of an organisation'scash reciepts and payments as it relates to the organisation's operating, investing and financing activities for a given period of time usually a year.

Most if not all organisations that prepare financial statements are required to prepare the cash flow statement for their activities.

Operating activites affects profits and losses, financing activities show cash flow regarding capital and gearing of the business and the investing activiites has to do with buying of assets or investing in the acquisition of non-current assets.

Baron Saunders · Answer 2

a. summarizes the operating, financing, and investing activities of an entity

Explanation:

The statement cash flows is a part of the financial statement that shows how much cash was generated or used by the company in its operating, investing and financing activities.

It shows the movement between the opening cash balance and the cash balance at the end of the period as a result of the operating, investing and financing activities of the company.