Asked by Sophie Silva on May 11, 2024

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Which of the financial statements recognizes only transactions in which cash changes hands?

A) Balance sheet
B) Income statement
C) Statement of cash flows
D) Balance sheet and income statement
E) All of the options are correct.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Transactions

Acts of buying or selling goods, services, or financial instruments.

  • Distinguish between various types of financial statements and their specific purposes.
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Verified Answer

YZ
Younis ZidanMay 15, 2024
Final Answer :
C
Explanation :
The Statement of Cash Flows is the financial statement that recognizes only transactions in which cash changes hands. It provides a detailed analysis of what happened to a company's cash during a given period, categorizing cash flows into operating, investing, and financing activities.