Asked by Duncan Jackman on Jul 16, 2024
Verified
The final cash amount on the statement of cash flows needs to match the cash balance shown on the balance sheet.
Statement of Cash Flows
The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.
Balance Sheet
A report detailing a company's assets, liabilities, and equity of shareholders at a given moment.
- Clarify how the statement of cash flows correlates with other financial statements.
Verified Answer
PT
Prentella TorrenceJul 17, 2024
Final Answer :
True
Explanation :
The statement of cash flows and the balance sheet are interconnected; the ending cash balance on the statement of cash flows must match the cash balance reported on the balance sheet for the same period, ensuring consistency across financial statements.
Learning Objectives
- Clarify how the statement of cash flows correlates with other financial statements.