Question

____________ shows the details of cash generating and utilization activities of a company during a given period of time.

• A. Cash flow statement
• B. Profit and Loss A/c
• C. Balance sheet
• D. Segment reports

Answer 1

Answer: (A)

Cash flow statement

Cash flow statement is prepared to know the firms cash position for a given period of time. It shows how the cash was generated and from which activity and how the cash was utilized and in which activity. If an assets is sold for Rs.25000/-, its a generation of cash. If an assets is purchased for Rs.2000, its utilization of cash.