Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?
A
Income statement
B
Balance sheet
C
Cash flow statement
D
Statement of changes in equity
Correct Answer: Cash flow statement
Cash flow statement shows the movement of cash and cash equivalents during an accounting period. A cash flow statement, also known as statement of cash flows or funds flow statement, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.