The difference between the beginning and ending cash balances shown on the balance sheet a. is added to net income to obtain total cash inflows. b. serves as a control figure for the statement of cash flows. c. is deducted from net income to obtain net cash inflows. d. is the source of all investing and financing activities. e. is both "deducted from net income to obtain net cash inflows" and "the source of all investing and financing activities".

Question

Business

Josie Patton

31 August, 01:38

The difference between the beginning and ending cash balances shown on the balance sheet a. is added to net income to obtain total cash inflows. b. serves as a control figure for the statement of cash flows. c. is deducted from net income to obtain net cash inflows. d. is the source of all investing and financing activities. e. is both "deducted from net income to obtain net cash inflows" and "the source of all investing and financing activities".

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Kathleen Hawkins · Answer 1

b. serves as a control figure for the statement of cash flows.

Explanation:

As we know that

The beginning balance of the cash is come from the trail balance and the ending balance is computed by preparing the cash flows statements which comprises of operating, financing, and the investing activities

So the both ending and the beginning balance of the cash could be presented on the cash flow statement