Answer (C) is correct . A statement of cash flows is a required financial statement. Its primary purpose is to provide information about cash receipts and payments by reporting the cash effects of an enterprise’s operating, investing, and financing activities. Related disclosures report the effects of noncash investing and financing activities. Because the statement or a separate schedule reconciles net income and net operating cash flow, depreciation, a noncash expense, is included in the presentation.
Answer (A) is incorrect because The balance sheet does not include periodic net income or depreciation expense.
Answer (B) is incorrect because The income statement does not have captions for operating and financing activities.
Answer (D) is incorrect because Equity does not include captions for operating and investing activities, depreciation, and net income.
|
