Cash Flow Statements Identify Three Sources of Cash Receipts and Disbursements

question 266

True/False

Cash flow statements identify three sources of cash receipts and disbursements: Assets,liabilities and owners' equity.

---

Definitions:

Expenses

Outflows of resources or incurring of liabilities (or a combination of both) resulting from a company's activities intended to generate income.

Assets

Economic resources owned or controlled by a business or an individual that are expected to produce value.

Accounting Information System

A system designed to collect, store, manage, process, retrieve, and report financial data for its users.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and statement of cash flows.