The accuracy of the statement of cash flows,regardless of method used,can be verified by computing the change in the balance of:
A)cash.
B)equity.
C)revenue.
D)liabilities.

Question

Quizplus · Accepted Answer

The accuracy of the statement of cash flows can be verified by computing changes in cash balance. The statement of cash flows shows the inflows and outflows of cash during a specific period, and the net change in cash should match the change in the cash balance in the balance sheet. Therefore, computing the change in the cash balance can help to ensure the accuracy of the statement of cash flows.

The Accuracy of the Statement of Cash Flows,regardless of Method