The accuracy of the Statement of Cash Flows can be verified by computing the change in the balance of the:

Question

Quizplus · Accepted Answer

The Statement of Cash Flows shows the change in cash and cash equivalent accounts, including operating activities, investing activities, and financing activities. Therefore, computing the change in the balance of the cash and cash equivalent accounts can verify the accuracy of the statement. Changes in equity, revenue, asset, and liability accounts do not directly relate to the Statement of Cash Flows.

The Accuracy of the Statement of Cash Flows Can Be