The Statement of Cash Flows Summarizes the Changes in a Firm's

question 61

True/False

The statement of cash flows summarizes the changes in a firm's cash position for a specified period of time and details why the change occurred.

---

Definitions:

Posting

The process of transferring entries from a journal into the respective accounts in the ledger.

Ledger Account

A record or statement that summarizes all the transactions relating to a particular item or entity in the accounting process.

Journal Page

A journal page refers to a sheet or electronic page in an accounting ledger where financial transactions are chronologically recorded.

Cash Advance

A short-term loan from a bank or alternative lender, often accessed through a credit card.