A company reported a net loss of $30,000 for Year 1,but its cash balance increased during the year.Which financial statement should management refer to for an explanation of this situation?

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about the sources and uses of cash during the year, which can help explain how the cash balance increased despite the net loss reported on the income statement.

A Company Reported a Net Loss of $30,000 for Year