The explanation of why the profit differs from change in cash balance for the period is explained in which of the following statements?

Question

Quizplus · Accepted Answer

The cash flow statement explains the changes in cash balance over a period and breaks down the sources and uses of cash. The income statement shows the profit or loss for the period, which may not be the same as the change in cash balance due to non-cash expenses or revenues included in the profit calculation. The balance sheet shows the financial position of the company at a specific point in time, while the statement of changes in equity shows the changes in equity during a period.

The Explanation of Why the Profit Differs from Change in Cash