Which of the following would indicate an accurate statement of cash flows?
A) Net cash flow is equal to marketable securities balance
B) Net cash flows from financing activities are equal to the change in stockholder's equity
C) Net cash flow is equal to the ending cash balance
D) Net cash flow is equal to the change in the cash balance

Question

Quizplus · Accepted Answer

Net cash flow is calculated as the change in the cash balance from the beginning of the period to the end of the period. Choice A is incorrect because marketable securities are not necessarily equal to cash. Choice B is incorrect because net cash flow from financing activities includes more than just changes in stockholder's equity. Choice C is incorrect because ending cash balance includes the beginning cash balance plus net cash flow, not just net cash flow.

Which of the Following Would Indicate an Accurate Statement of Cash