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Which of the following statements regarding the statement of cash flows is true? a.The statement of...

Which of the following statements regarding the statement of cash flows is true?

a.The statement of cash flows is organized to present classifications for total cash inflows and cash outflows.

b.The statement of cash flows analyzes the changes in consecutive balance sheets in conjunction with the income statement.

c.The statement of cash flows is an optional financial statement.

d.The statement of cash flows analyzes only the changes in current assets and current liabilities.

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Answer #1

Answer- The correct answer is A) The statement of cash flows is organised to present classifications for total cash inflows and cash outflows.

B) is incorrect as Cash flow statement states the Movements in cash and cash equivalents over between 2 balance sheet dates

C) is incorrect as cash flow statement is a Mandatory financial statement

D) is incorrect as Cash flow statement also analyses the Investing and financing activities along with current assets and current liabilities

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