Both the statement of cash ﬂows and the statement of ﬁnancial position report on the causes of the changes in the cash of the business.

Question

Quizplus · Accepted Answer

The statement of cash flows directly reports on the causes of changes in cash through operating, investing, and financing activities, while the statement of financial position (balance sheet) shows the end result of these changes in the cash and cash equivalents balance at a point in time, without detailing the causes.

Both the Statement of Cash ﬂOws and the Statement of ﬁNancial