The final step in generating a statement of cash flows is to
A) sum up cash flow from operations, financing, and investment activities and transfer it to the balance sheet.
B) sum up cash flow from operations and transfer it to the balance sheet.
C) sum up cash flow from investing activities and transfer it to the balance sheet.
D) none of the above.

Question

Quizplus · Accepted Answer

The final step in generating a statement of cash flows is to sum up the cash flows from operating, investing, and financing activities to determine the net increase or decrease in cash, which is then reconciled with the beginning cash balance to arrive at the ending cash balance on the balance sheet.

The Final Step in Generating a Statement of Cash Flows