The net increase (decrease) in cash reported on the statement of cash flows should reconcile the beginning and ending cash balances reported in the comparative balance sheets.

Question

Quizplus · Accepted Answer

The statement of cash flows provides a reconciliation between the beginning and ending cash balances reported in the comparative balance sheets. The net increase (or decrease) in cash reported on the statement of cash flows should equal the difference between the beginning and ending cash balances on the balance sheet.

The Net Increase (Decrease) in Cash Reported on the Statement