A statement of cash flows should reconcile the differences between the beginning and ending balances of
A)Cash
B)Cash equivalents
C)Cash and cash equivalents
D)Working capital
E)Cash,cash equivalents,and non-current investments

Question

Quizplus · Accepted Answer

A statement of cash flows should reconcile the differences between the beginning and ending balances of cash and cash equivalents. This is because the statement of cash flows only focuses on cash and cash equivalents, which are highly liquid and easily convertible to cash within a short period of time. Non-current investments may not meet this criteria and may not be included in the statement of cash flows. Working capital is a broader concept that includes current assets and liabilities, and thus is not specific to cash and cash equivalents.

A Statement of Cash Flows Should Reconcile the Differences Between