The firm's statement of cash flows only uses the balance sheet and net income to determine the amount of cash a firm has generated and how it has used that cash during a given period.

Question

Quizplus · Accepted Answer

The statement of cash flows also takes into account changes in non-cash items such as depreciation, as well as cash inflows and outflows from operating, investing, and financing activities.

The Firm's Statement of Cash Flows Only Uses the Balance