A statement of cash flows explains the differences between the beginning and ending balances of:
A) Cash, cash equivalents, and short-term investments.
B) Cash and cash equivalents.
C) Net income.
D) Working capital.
E) Equity.

Question

Quizplus · Accepted Answer

A statement of cash flows specifically reconciles the beginning and ending balances of cash and cash equivalents, showing how cash is generated and used during a period.

A Statement of Cash Flows Explains the Differences Between the Beginning