Which of the following would NOT be found on the statement of cash flows?

• A. Cash flows from operating activities
• B. Net income
• C. Total assets
• D. Cash flows from investing activities

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the purpose of the statement of cash flows. It is a financial statement that provides information about the cash inflows and outflows of a company during a specific period, categorized into operating, investing, and financing activities.
2. Step 2: Review the components of the statement of cash flows. The three main sections are: (1) Cash flows from operating activities, which include transactions related to the core business operations; (2) Cash flows from investing activities, which include transactions related to the purchase or sale of long-term assets; and (3) Cash flows from financing activities, which include transactions related to borrowing, repaying debt, or issuing equity.
3. Step 3: Analyze the options provided in the problem. 'Cash flows from operating activities' and 'Cash flows from investing activities' are clearly sections of the statement of cash flows. 'Net income' is often used as a starting point for calculating cash flows from operating activities under the indirect method.
4. Step 4: Consider the term 'Total assets.' Total assets are part of the balance sheet, not the statement of cash flows. The statement of cash flows focuses on cash movements, not the overall value of assets.
5. Step 5: Conclude that 'Total assets' would NOT be found on the statement of cash flows, as it is a balance sheet item and does not represent a cash flow category.