The sum of the net increases/decreases in the operating, investing and financing sections of the cash flow statement is equal to the change in cash over the period.

Question

Quizplus · Accepted Answer

This statement is true. The cash flow statement provides information about the inflow and outflow of cash during a specific period. The net increases or decreases in operating, investing, and financing activities are presented in the cash flow statement, and the sum of these amounts should equal the change in cash over the same period. This equation provides a useful check to ensure that the cash flow statement is accurate and complete.

The Sum of the Net Increases/decreases in the Operating, Investing