The statement of cash flows and the statement of financial position are interrelated because

Question

Quizplus · Accepted Answer

The statement of cash flows shows the cash inflows and outflows for a period, and its ending balance of cash must match the cash amount reported in the statement of financial position (balance sheet). This ensures consistency between the two financial statements, as the statement of financial position provides a snapshot of the company's financial condition at a specific point in time, including its cash balance.

The Statement of Cash Flows and the Statement of Financial