Asked by Colin dunkley on Jun 19, 2024
Verified
The reasons for a decrease in cash can be determined by examining the statement of income.
Decrease In Cash
A reduction in the amount of cash a company holds, which may result from payments for expenses, investments, or debts.
Statement Of Income
A financial document that reports a company's financial performance over a specific period, showing revenues, expenses, and net income.
- Gain insights into the significance of cash flows for the functioning and financial steadiness of a business.
- Determine the effect of economic activities on the financial statements of a business.
Verified Answer
LB
Latasha BryantJun 23, 2024
Final Answer :
False
Explanation :
The reasons for a decrease in cash are primarily determined by examining the statement of cash flows, not the statement of income. The statement of cash flows provides detailed information on how cash is generated and used in operating, investing, and financing activities.
Learning Objectives
- Gain insights into the significance of cash flows for the functioning and financial steadiness of a business.
- Determine the effect of economic activities on the financial statements of a business.