The cash flow identity states that the cash flow from the left hand side of the balance sheet is equal to the cash flow on the right hand side of the income statement.

Question

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The cash flow identity states that the cash flow from the left hand side of the balance sheet (i.e. cash and equivalents, accounts receivable, etc.) is equal to the cash flow on the right hand side of the cash flow statement (i.e. operating activities, investing activities, and financing activities), not the income statement.

The Cash Flow Identity States That the Cash Flow from the Left