Which of the following items would appear on a Cash Flow Statement?

The Cash Flow Statement is designed to provide a summary of the cash inflows and outflows for a specific period, highlighting how cash is generated and used within an organization. The focus is on cash, not accounting figures.

When considering which item would appear on a Cash Flow Statement, "Cash generated from asset sales" is a clear example of an item that reflects actual cash transactions. This type of cash inflow is vital in understanding how the company is obtaining resources to fund operations, invest in new assets, or pay off liabilities. Sales of assets directly result in cash inflow and are thus reported in the cash flow section concerning investing activities, showing the movement of cash related to long-term asset transactions.

On the other hand, sales revenue reflects total income earned by a company from its core business activities but does not necessarily indicate the actual cash that has been received. Similarly, net assets represent the total assets minus liabilities on a balance sheet, not cash flow. Gross profit, which is sales revenue minus the cost of goods sold, is an important figure for assessing profitability, but it also does not reflect changes in cash. Only cash transactions are recorded in the Cash Flow Statement, making cash generated from asset sales the item that fits appropriately within this context.