Cash flow statement reveals _______.

The effects of transactions involving movement of cash

No worries! We‘ve got your back. Try BYJU‘S free classes today!

A statement depicting change in cash position from one period to another

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Flow of funds

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Both (A) & (B)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Both (A) & (B)
Cash flow statement is a statement showing the inflow and outflow of the cash of a company classified in 3 categories:
1. Operating cash flows
2.Investing cash flows
3.Financing cash flows

It involves movement of the cash in the company from these 3 categories of activities.
Therefore, It is a statement depicting changes in cash position from one period to another.

Suggest Corrections

Similar questions

Q. Which of the following statement is true?
a. Cash flow reveals only the inflow of cash.
b. Cash flow reveals only the outflow of cash.
c. Cash flow is a substitute for income statement.
d. Cash flow statement is not a replacement of funds flow statement.

Cash flow from ___ is an item on the cash flow statement that reports the aggregate change in a company's cash position resulting from investment gains or losses.

Q. Purchase of furniture is a cash outflow from activity in a cash flow statement.

Q. Cash flow from activities reports the change in a company's cash position resulting from investment gains.

Q. A ten-year bond was issued at par for Rs.25,000 cash. This transaction should be shown in a statement of cash flows under ______________.

Join BYJU'S Learning Program