The accuracy of the statement of cash flows can be verified by computing the change in the balance of the cash and cash equivalents.

Question

Quizplus · Accepted Answer

The change in the balance of the cash and cash equivalents as reported on the statement of cash flows should match the actual change in the cash and cash equivalents balance on the balance sheet for the same period. Therefore, verifying the accuracy of the statement of cash flows can be done by comparing these two balances.

The Accuracy of the Statement of Cash Flows Can Be