What does the Statement of Cash Flows report include?

The Statement of Cash Flows specifically focuses on cash inflows and outflows during a certain period. It provides valuable information about how an organization generates and uses cash, categorizing the cash transactions into three main sections: operating activities, investing activities, and financing activities.

This statement helps stakeholders assess the company's liquidity, flexibility, and overall financial health. It is essential for understanding the actual cash generated from operations, as opposed to net income, which can include non-cash items. By analyzing cash flows, investors and creditors can evaluate a company's ability to meet its obligations, reinvest in its operations, and return capital to shareholders.

In contrast, other options, such as assets and liabilities, revenue and expenses, and owner's equity changes, pertain to different financial statements, like the Balance Sheet and the Income Statement. Each of these financial concepts provides important insights but does not focus specifically on cash movements like the Statement of Cash Flows does.