The cash flow statement must always balance to the change in the cash position of the company during the period.

Question

Quizplus · Accepted Answer

The cash flow statement is designed to show the changes in the cash position of a company during a specific period. It reconciles the opening cash balance with the closing cash balance, accounting for cash inflows and outflows from operating, investing, and financing activities. Therefore, it must always balance to the change in the cash position during the period.

The Cash Flow Statement Must Always Balance to the Change