The Statement of Cash Flows reflects the movement between the:
A) Statement of Financial Position at the beginning and end of the financial year
B) Revenue and expenses in the Income Statement for the financial year
C) Income Statement and Statement of Financial Position
D) Income Statement and Statement of Changes in Equity

Question

Quizplus · Accepted Answer

The Statement of Cash Flows shows the changes in cash and cash equivalents entering and leaving a company, which is essentially the movement of cash between the Statement of Financial Position (Balance Sheet) at the beginning and the end of the financial year. It does not directly reflect the movement between the Income Statement, Statement of Changes in Equity, or a combination of these statements.

The Statement of Cash Flows Reflects the Movement Between The