The statement of cash flows shows the changes in the balance sheet accounts between periods.

Name: The statement of cash flows shows the changes in the balance sheet accounts between periods.
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The statement of cash flows explains the inflows (receipts) and outflows (payments) of cash and cash equivalents within a certain time frame, which can help to explain changes in the balance sheet accounts. Therefore, the statement of cash flows indirectly shows changes in balance sheet accounts.

The Statement of Cash Flows Shows the Changes in the Balance