The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.The statement of cash flows explains the change in cash and cash equivalents from operating,investing and financing activities.

Question

Quizplus · Accepted Answer

The statement of cash flows is a financial statement that explains the difference between the beginning and ending balances of cash and cash equivalents, and also explains the change in cash and cash equivalents from operating, investing and financing activities. Therefore, the statement of cash flows is true.

The Statement of Cash Flows Explains the Difference Between the Beginning