The amount of cash at the end of the period, as reflected on the statement of cash flows, should match which of the following?
A) cash on the current balance sheet
B) retained earnings for the previous reporting period
C) liabilities for next accounting period
D) retained earnings for the same period

Question

Quizplus · Accepted Answer

The amount of cash on the statement of cash flows should match the cash balance on the current balance sheet, as they both represent the same information at different points in time. Retained earnings (choices B and D) are not related to the cash balance and liabilities for the next accounting period (choice C) are a future obligation and not relevant to the current cash balance.

The Amount of Cash at the End of the Period