The correct answer is D. All of these.
A cash flow statement is a financial statement that shows how much cash a company has received and spent over a period of time. It is prepared by using information from the balance sheet, the profit and loss account, and additional information.
The balance sheet shows a company’s assets, liabilities, and equity at a specific point in time. The profit and loss account shows a company’s revenues, expenses, and net income over a period of time. Additional information can include things like cash flow from investing activities, cash flow from financing activities, and changes in cash and cash equivalents.
All of this information is used to prepare a cash flow statement, which shows how a company’s cash position has changed over a period of time. This information is important for investors and creditors, as it helps them to understand a company’s financial health.
Here is a more detailed explanation of each option:
- Option A: Balance sheet. The balance sheet is a financial statement that shows a company’s assets, liabilities, and equity at a specific point in time. Assets are things that a company owns, such as cash, inventory, and property. Liabilities are things that a company owes, such as accounts payable and long-term debt. Equity is the difference between a company’s assets and liabilities.
- Option B: Profit and loss account. The profit and loss account is a financial statement that shows a company’s revenues, expenses, and net income over a period of time. Revenues are the money that a company earns from selling its products or services. Expenses are the costs that a company incurs in order to generate its revenues. Net income is the difference between a company’s revenues and expenses.
- Option C: Additional informations. Additional information can include things like cash flow from investing activities, cash flow from financing activities, and changes in cash and cash equivalents. Cash flow from investing activities shows how a company has used its cash to invest in assets, such as property, plant, and equipment. Cash flow from financing activities shows how a company has used its cash to raise money, such as by issuing debt or equity. Changes in cash and cash equivalents shows how a company’s cash balance has changed over a period of time.
I hope this explanation is helpful. Please let me know if you have any other questions.