The statement of cash flows helps measure how the changes in a balance sheet accounts were financed between two time periods, the beginning and the ending balance.

Question

Quizplus · Accepted Answer

The statement of cash flows shows the sources and uses of cash during a certain period, which allows for the analysis of how changes in balance sheet accounts were financed. Therefore, the statement of cash flows helps measure how the changes in a balance sheet accounts were financed between two time periods.

The Statement of Cash Flows Helps Measure How the Changes