Question

the statement of cash flows . multiple choice question. a. focuses on activities that affect net income b. answers the same questions that are answered by the statement of retained c. earnings is one of the required financial statements is optional for all public companies

Answer 1

The statement of cash flows focuses on activities that affect net income.

Thus, the correct option is A.

What is cash flows?

By monitoring an organization's cash flow, a cash flow statement is a crucial tool for managing finances. This report is one of the three crucial ones that determine a company's performance, together with the income statement and the balance sheet.

An entity can record its total cash inflows and outflows for a specific accounting period using the cash flow statement. An organization uses the income statement to record all elements relating to revenues, expenses, gains, and losses during the course of a specific accounting period.

The main goal of a cash flow statement is to give relevant information about an organization's cash flows during a specific time period under multiple headings, such as operating, investing, and financing operations.

Learn more about cash flows, here

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