Question

In addition to the three basic financial statements, which of the following is also a required financial statement?

a. The "Cash Budget"
b. Statement of Cash Flows
c. Statement of Cash Inflows and Outflows
d. The "Cash Reconciliation"

Answer 1

Answer: B Statement of cash flows

Explanation: Statement of cash flows is prepared as part of the report included when presenting a Financial Statement. It describes how the cash of an organisation is being managed. it is broken down into 3 parts and they are:

Cash flow from Operating activities

Cash flow from Investing activities

Cash flow from Financing activities