The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

Question

Quizplus · Accepted Answer

The statement of cash flows is a financial statement that shows the changes in cash and cash equivalents between two periods, typically the beginning and ending balances. Therefore, the statement of cash flows does explain the difference between the beginning and ending balances of cash and cash equivalents.

The Statement of Cash Flows Explains the Difference Between the Beginning