The total of the cash flows from operating,investing,and financing activities equals the net increase or decrease in cash for the year.

Question

Quizplus · Accepted Answer

This is a fundamental accounting principle known as the Statement of Cash Flows. The statement shows the inflows and outflows of cash from different activities and the net change in cash for the period. The total of operating, investing, and financing cash flows should equal the net increase or decrease in cash for the period.

The Total of the Cash Flows from Operating,investing,and Financing Activities