The Sum of the Cash Generated or Used by Each

question 78

True/False

The sum of the cash generated or used by each section of the statement of cash flows should equal the difference between the beginning and ending balance of the cash and cash equivalent accounts.

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Definitions:

Account Type

A classification that dictates the nature and purpose of an account, such as assets, liabilities, equity, revenue, or expenses.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, depending on the account type.

Internal Control

Systems and processes implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

Objectives

The goals or aims that an organization or individual strives to achieve over a certain period.