The cash flow statement provides a link between two balance sheets by showing how profit (or loss) has changed equity from one balance sheet date to the next.

Name: The cash flow statement provides a link between two balance sheets by showing how profit (or loss) has changed equity from one balance sheet date to the next.
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Question

Quizplus · Accepted Answer

The cash flow statement shows the inflows and outflows of cash during a period, not how profit or loss has changed equity. The statement of changes in equity shows changes in equity.

The Cash Flow Statement Provides a Link Between Two Balance