When the cash flows from operating,investing,and financing activities are combined to give net cash flow for the period,a net decrease in cash is subtracted from the beginning cash to calculate the ending cash balance.

Question

Quizplus · Accepted Answer

This statement is true according to the indirect method of preparing the statement of cash flows. The net decrease in cash is calculated by subtracting the ending cash balance from the beginning cash balance.

When the Cash Flows from Operating,investing,and Financing Activities Are Combined