[amp_mcq option1=”Income statement” option2=”Balance sheet” option3=”Cash flow statement” option4=”Statement of changes in equity” correct=”option3″]
The correct answer is C. Cash flow statement.
A cash flow statement is a financial statement that shows the movement of cash and cash equivalents during an accounting period. It reports the sources and uses of cash during the period, and it helps users of financial statements understand a company’s liquidity and financial flexibility.
An income statement is a financial statement that reports a company’s revenues, expenses, and net income for a specific period of time. It helps users of financial statements understand a company’s profitability.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. It helps users of financial statements understand a company’s financial position.
A statement of changes in equity is a financial statement that reports the changes in a company’s equity during a specific period of time. It helps users of financial statements understand how a company’s equity has changed over time.