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What is the purpose of the statement of cash flows?

(A) It illustrates the profitability of a company.
(B) It reports the financial position of a company at a specific point in time.
(C) It outlines the changes in stockholders' equity accounts from the beginning of the period to the end of the period.
(D) It is intended to provide a cash-based view of a company.

Respuesta :

Answer:

(B) It reports the financial position of a company at a specific point in time.

Explanation:

  • Cash flow is a type of payment especially form one bank to another bank and mostly are the payments that are expected to happen in the future, and thus are uncertain and need to predict well in time.
  • They help[ to determine the rate of return and determine the NPV. The cash flows can be used to evaluate the 'quality' of income.

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