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fiasKO [112]
3 years ago
9

How is the statement of cash flows connected to the balance sheet?

Business
1 answer:
Taya2010 [7]3 years ago
5 0

Answer:

Option C is correct one.

The changes in all of the balance sheet accounts are calculated and then listed as inflows or outflows, except for cash

Explanation:

  • In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.
  • The purpose of the balance sheet is to reveal the financial status of a business as of a specific point in time. The statement shows what an entity owns (assets) and how much it owes (liabilities), as well as the amount invested in the business (equity).
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