A Statement That Explains the Changes in the Cash Balance

question 389

Multiple Choice

A statement that explains the changes in the cash balance of a firm over time is called a(n) :

• A) Statement of financial position.
• B) Statement of comprehensive income.
• C) Statement of current assets.
• D) Statement of analysis.
• E) Statement of cash flows.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is increased. For example, assets increase on the debit side, while liabilities increase on the credit side.

Chronological Order

The arrangement of events, numbers, or actions in the sequence that they occurred or were performed.

Debit Normal

Refers to accounts that are increased with a debit transaction and have a natural debit balance, such as assets, expenses, and losses.

Credit Normal

The usual terms or conditions under which credit is extended to customers, including payment due dates and interest rates.