Which financial statement provides information about cash inflows and outflows?

The cash flow statement is specifically designed to provide detailed information about the inflows and outflows of cash during a specific period. This statement categorizes cash flows into operating, investing, and financing activities, allowing users to assess how cash is generated and used in the business.

The income statement, while it reflects the company's profitability over a period, does not detail cash transactions; it mainly reports revenues and expenses on an accrual basis, which means it records revenues when earned and expenses when incurred, regardless of actual cash movement.

The balance sheet provides a snapshot of a company’s financial position at a specific point in time, detailing assets, liabilities, and equity, but it does not reflect cash movements throughout the period.

The statement of retained earnings shows how the company's retained earnings have changed over a particular period due to profits or losses and dividends but does not provide cash flow details.

Thus, the cash flow statement is the only financial statement that directly accounts for the cash transactions of a business, making it the right choice for identifying cash inflows and outflows.