When preparing a statement of cash flows, the sum of operating and investing and financing activities equals the:
A)change in cash for the period.
B)cash inflow for the period.
C)ending cash balance.
D)net income as reported on the income statement.

Question

Quizplus · Accepted Answer

The statement of cash flows shows the inflows and outflows of cash over a period of time from three main activities: operating, investing, and financing. The sum of these three activities should equal the change in cash for the period, which is typically shown as a line item on the statement of cash flows. Therefore, choice A is the correct answer.

When Preparing a Statement of Cash Flows, the Sum of Operating