Which statement shows cash inflows and outflows for a period?

Which statement shows cash inflows and outflows for a period?

• A. Balance Sheet
• B. Income Statement
• C. Statement of Cash Flows
• D. Cash Flow Statement

Answer: (D)

Cash movements over a period are shown in the cash flow statement. It tracks cash inflows and outflows through operating, investing, and financing activities, starting from the period’s beginning cash and arriving at ending cash. The balance sheet shows cash at a point in time, not flows, while the income statement shows revenues and expenses (profit) over the period but not actual cash movements. The report is commonly called the Statement of Cash Flows, and in these options the label Cash Flow Statement represents the same document.

Cash movements over a period are shown in the cash flow statement. It tracks cash inflows and outflows through operating, investing, and financing activities, starting from the period’s beginning cash and arriving at ending cash. The balance sheet shows cash at a point in time, not flows, while the income statement shows revenues and expenses (profit) over the period but not actual cash movements. The report is commonly called the Statement of Cash Flows, and in these options the label Cash Flow Statement represents the same document.