The simple rules that drive the statement of cash flow are:
$\begin{array}{lll}
\text { Cash uses } & = & \text { Asset increases, liability increases } \
\text { Cash sources } & = & \text { Asset decreases, liability decreases }
\end{array}$

Question

The simple rules that drive the statement of cash flow are:
 $\begin{array}{lll}
\text { Cash uses } & = & \text { Asset increases, liability increases } \
\text { Cash sources } & = & \text { Asset decreases, liability decreases }
\end{array}$

Quizplus · Accepted Answer

The correct rules are: Cash uses = Asset increases, liability decreases; Cash sources = Asset decreases, liability increases.

The Simple Rules That Drive the Statement of Cash Flow