The accuracy of the statement of cash flows can be verified by computing the change in the balance of the
A) cash and cash equivalent accounts.
B) equity account.
C) revenue account.
D) asset and liability accounts.

Question

Quizplus · Accepted Answer

The statement of cash flows shows the inflow and outflow of cash and cash equivalents during a period. Thus, the accuracy of the statement can be verified by computing the change in the balance of the cash and cash equivalent accounts, which should match with the net increase or decrease in cash shown in the statement of cash flows.

The Accuracy of the Statement of Cash Flows Can Be