The change in cash on the statement of cash flows will always equal net income on the statement of changes in shareholders' equity.

Question

Quizplus · Accepted Answer

The change in cash on the statement of cash flows is affected by numerous factors including net income, but also includes changes in accounts receivable, accounts payable, and other operating assets and liabilities. Therefore, it is not always equal to net income on the statement of changes in shareholders' equity.

The Change in Cash on the Statement of Cash Flows