What financial statement provides a summary of cash inflows and outflows?

The Statement of Cash Flows is specifically designed to provide a detailed summary of cash inflows and outflows over a specific accounting period. This financial statement categorizes cash transactions into three main sections: operating activities, investing activities, and financing activities. By showing how cash is generated and used during the period, it helps stakeholders understand how well a company manages its cash position, which is crucial for day-to-day operations and overall financial health.

In contrast, the Income Statement focuses on revenues and expenses to determine net income, while the Balance Sheet presents a snapshot of a company’s assets, liabilities, and equity at a specific point in time. The Statement of Changes in Equity details the movements in equity over a period and is not oriented towards cash flow. Thus, the Statement of Cash Flows is the correct answer as it directly addresses the question regarding cash movements within a business.