The ending cash balance on the cash flow statement is linked to the:
A)Retained earnings
B)Cash and cash equivalents
C)Income statement
D)Long-term assets

Question

Quizplus · Accepted Answer

The ending cash balance on the cash flow statement represents the amount of cash and cash equivalents that the company has at the end of the period. This is a key link because the cash balance can be used to finance ongoing operations, pay off debts or invest in new opportunities for growth. Retained earnings, income statement, and long-term assets are all important components of a company's financial statements, but they are not directly linked to the ending cash balance on the cash flow statement.

The Ending Cash Balance on the Cash Flow Statement Is