The sources and uses of cash provided by operating activities represent the cash effect of the revenues and expenses reported on the income statement.

Question

Quizplus · Accepted Answer

The statement is true. The cash provided by operating activities section in the statement of cash flows shows the cash inflows and outflows directly related to the operations of the business, and these are derived from the revenues and expenses reported on the income statement.

The Sources and Uses of Cash Provided by Operating Activities