The financial statement that provides information about cash receipts and cash disbursements for the period is the

Question

Travis Lowe

Business

26 October, 23:39

The financial statement that provides information about cash receipts and cash disbursements for the period is the

+2

Answers (1)

Know the Answer?

Marcos Olson · Answer 1

The answer would be CASH FLOW

Explanation:

Cash flow represents the cash receipts and cash disbursements as a result of business activity. The statement of cash flows enables users of the financial statements to determine how well a company's income generates cash and to predict the potential of a company to generate cash in the future.

A related use of the statement of cash flows is that it provides information about the quality of a company's net income. A company that has records that show significantly less cash inflow on the statement of cash flows than the reported net income on the income statement could very well be reporting revenue for which cash will never be received from the customer or underreporting expenses.