The statement of cash flows is the link between the accrual-based income statement and the cash reported on the balance sheet.

Question

Quizplus · Accepted Answer

The statement of cash flows explains the changes in cash and cash equivalents during a period, reconciling the accrual-based income statement with the cash balance reported on the balance sheet. Therefore, the statement of cash flows acts as a bridge between the income statement and balance sheet.

The Statement of Cash Flows Is the Link Between the Accrual-Based