ECONOMICS

COST ACCOUNTING

INFORMATION FOR DECISION MAKING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What do financial statements consist of?
A
taxes on the company
B
financial position
C
profit or loss
D
cash flows
E
expenses
Explanation: 

Detailed explanation-1: -There are three sections in a cash flow statement: operating activities, investments, and financial activities. Operating activities: Operating activities are those cash flow activities that either generate revenue or record the money spent on producing a product or service.

Detailed explanation-2: -A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period.

Detailed explanation-3: -The income statement and the cash flow statement are two out of the three components of a financial statement, the other being the balance sheet.

There is 1 question to complete.