To check the accuracy of the ending total on the statement of cash flows, the balance in the ________ can be used.

Question

Quizplus · Accepted Answer

The statement of cash flows reports the changes in the cash and cash equivalent accounts for a specific period. Therefore, to check the accuracy of the ending total on the statement of cash flows, the balance in the cash and cash equivalent accounts can be used as a reference point. Options A and D are incorrect as the balance in asset and liability accounts may not necessarily reflect the cash and cash equivalents for the period. Option B is incorrect as it only considers the liability accounts, which may have no direct relation to cash flows.

To Check the Accuracy of the Ending Total on the Statement