A net increase in cash and equivalents from the 2002 statement of cash flows is equivalent to

Question

Quizplus · Accepted Answer

The net increase in cash and equivalents from the 2002 statement of cash flows represents the change in cash from the 2001 to the 2002 balance sheets. Option A is incorrect because cash generated by operations may not be the same as the net increase in cash and equivalents. Option C is incorrect because the change in retained earnings balances does not necessarily result in a net increase in cash and equivalents. Option D is incorrect because the net cash provided by external funds does not provide information about the net increase in cash and equivalents from the statement of cash flows.

A Net Increase in Cash and Equivalents from the 2002