Which financial statement informs the reader where the money came from and where it went?

The statement of cash flow is the financial statement that specifically details the sources and uses of cash during a specific reporting period. It provides a comprehensive overview of cash inflows and outflows from operating, investing, and financing activities, giving readers insight into how cash is generated and spent.

In contrast, the statement of profit and loss and the income statement (which essentially refer to the same document) summarize a company's revenues and expenses, ultimately showcasing net profit or loss, but they do not provide the detailed view of cash movement. The balance sheet offers a snapshot of a company's assets, liabilities, and equity at a specific point in time, providing financial position insights but lacking details on cash flow.

Therefore, the statement of cash flow uniquely fulfills the requirement of showing where the money came from and where it went, making it the correct choice for this question.