When the year-to-year changes in comparative balance sheet accounts do not coincide with the changes implied from amounts reported on the statement of cash flows,the analyst may find useful information for reconciliation in notes to the financial statements and the
A)operating activities section of the cash flow statement.
B)capital stock account.
C)balance sheet.
D)investments account.

Question

Quizplus · Accepted Answer

The operating activities section of the cash flow statement provides information on the cash flows generated or used in the company's operations, which can help explain any discrepancies between changes in balance sheet accounts and the reported cash flows. Additionally, the notes to the financial statements may provide further information on non-cash transactions or other events that could impact the changes in balance sheet accounts. The capital stock account, investments account, and balance sheet may not provide relevant information for reconciling differences between these financial statements.

When the Year-To-Year Changes in Comparative Balance Sheet Accounts Do