When an annual statement of cash flows is prepared the sum of the three major components,operating activities,investing activities and financing activities,add up to:

Question

Quizplus · Accepted Answer

The sum of the three major components on the annual statement of cash flows should add up to the change in the cash at bank account balance over the year. This is because the statement reports the inflows and outflows of cash for operating, investing, and financing activities, which ultimately affect the ending cash balance.

When an Annual Statement of Cash Flows Is Prepared the Sum