Choose the best statement about the Cash Flow report: which is true?

Choose the best statement about the Cash Flow report: which is true?

• A. It only displays annual totals.
• B. It cannot compare scenarios.
• C. When viewing a Cash Flow report, you can compare 2 scenarios side by side on the same page.
• D. It shows only inflows.

Answer: (C)

Cash flow reports show how cash moves in and out over time, helping you judge liquidity and timing of needs. The best statement is that, when you view a Cash Flow report, you can compare two scenarios side by side on the same page. This capability lets you easily see how changing assumptions affects inflows, outflows, and the resulting cash position across the same time periods, making it straightforward to perform scenario analysis and compare outcomes quickly. Other choices don’t fit because a Cash Flow report isn’t limited to annual totals; it typically presents data in multiple time buckets (monthly, quarterly, etc.) so you can analyze patterns over time. It does allow comparing scenarios, not prevents it, and it shows both inflows and outflows (not only inflows), providing a complete picture of cash movement.

Cash flow reports show how cash moves in and out over time, helping you judge liquidity and timing of needs. The best statement is that, when you view a Cash Flow report, you can compare two scenarios side by side on the same page. This capability lets you easily see how changing assumptions affects inflows, outflows, and the resulting cash position across the same time periods, making it straightforward to perform scenario analysis and compare outcomes quickly.

Other choices don’t fit because a Cash Flow report isn’t limited to annual totals; it typically presents data in multiple time buckets (monthly, quarterly, etc.) so you can analyze patterns over time. It does allow comparing scenarios, not prevents it, and it shows both inflows and outflows (not only inflows), providing a complete picture of cash movement.