The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

Question

Quizplus · Accepted Answer

The statement of cash flows explains how transactions and events impact the end-of-period cash balance, but it does not directly explain how they impact net income. The income statement shows the net income for the period.

The Statement of Cash Flows Explains How Transactions and Events