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Sagot :
Answer:
- What explains the changes in the cash account?
- Where does a company spends its cash?
- How does a company receive its cash?
Explanation:
The Statement of Cash Flows shows the actual cash that a company has by showing the various places that cash comes in from and how cash leaves. It therefore shows how the cash account changes.
In showing how cash leaves the company, the statement shows how the company spends its cash and in showing how money comes in, the statement shows how the company receives its cash as well such as through investments in other companies and net income.
The Statement of Cash Flows depicts a company's actual cash flow by displaying where the money originates from and where it goes. As a result, it depicts the movement of the cash account.
The statement indicates how money left the company and how it gets in, such as through investments in other companies and net income.
So, Option A, B, and D are correct.
The other Options are incorrect as:
- Option C is incorrect as a cash flow does not show how a company improves its operation it only shows the transactions.
- Option E is incorrect as cash flow does not represent changes in noncash accounts as cash flow represents only cash transactions.
A cash flow is a physical or digital transfer of capital: a payment, notably from one central bank fund to another, is a cash flow in its restricted sense; the word 'cash flow' is primarily used to denote the transfer of funds from one central bank account to another.
Thus Options A, B, and D are correct statements for cash flow.
For more information about Cash Flow refer to the link:
https://brainly.com/question/10714011
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