The summation of the operating, investment, and financing cash flows for a stated period of time must equal which one of the following for the same time period?
A)net income
B)total assets
C)ending cash balance
D)change in the cash balance
E)taxable income

Question

Quizplus · Accepted Answer

The summation of the operating, investment, and financing cash flows for a stated period of time is equal to the change in the cash balance for the same time period. This is because the cash balance at the beginning of the period, plus the cash inflows and minus the cash outflows, will equal the ending cash balance for the period. Therefore, the correct answer is D) change in the cash balance.

The Summation of the Operating, Investment, and Financing Cash Flows