Which term refers to a financial document that provides cash receipts and cash payments for a period?

• A. Stock
• B. Statement of Cash Flows
• C. Equity
• D. Balance Sheet

Answer: (B)

Focusing on cash movements over time, the document that records all cash receipts and all cash payments during a set period is the Statement of Cash Flows. It breaks the cash changes into operating activities, investing activities, and financing activities, showing how cash at the beginning of the period becomes cash at the end. This helps you assess liquidity and the company’s ability to generate cash to meet obligations. A balance sheet, by contrast, captures assets, liabilities, and equity at a single date rather than showing cash movements across a period. Equity refers to ownership in the company, and stock denotes ownership shares, neither of which describe a cash-flow report.