The cash flow statement is: cash flow = cash on hand + credit and cash sales - cash disbursements.

Name: The cash flow statement is: cash flow = cash on hand + credit and cash sales - cash disbursements.
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Question

Quizplus · Accepted Answer

The formula for calculating cash flow is more involved than simply adding cash on hand and subtracting cash disbursements. The correct formula takes into account changes in accounts receivable, accounts payable, and other adjustments such as depreciation and changes in long-term investments.

The Cash Flow Statement Is: Cash Flow = Cash on Hand