Question

Question 14 (of 16) 14. vale 15.00 points A statement of cash flows: O is prepared at the option of management O may be combined with the balance sheet O is a basic financial statement required for publicly held companies O may be combined with the statement of retained earnings at the option of management

Answer 1

As per GAAP there are three basic financial statements of an company include the            

               1) balance sheet (or statement of financial position),

               2) income statement

               3) cash flow statement

So cash flow statement is a basic financial statement required for publicly held companies

Cash Flow statement shows how changes in balance sheet accounts and income affect the cash and cash equivalents.