An important issue with revenue and expenses is the timing of the money received and the expenses paid. What financial statement helps to highlight this timing issue?

An important issue with revenue and expenses is the timing of the money received and the expenses paid. What financial statement helps to highlight this timing issue?
A . Cash Flow Statement
B . Profit Statement
C . Income Statement
D . Balance Sheet

View Answer

Answer: A

Explanation:

The Cash flow statement helps to show revenue and expenses during a period of time helping to highlight any timing issues. In an expanding business would buy equipment now for futureprofits. This is a cash flow issue.