The Statement of Cash Flows Is Integrated with the Balance

question 45

Multiple Choice

The statement of cash flows is integrated with the balance sheet because:

• A) the cash at the beginning of the period plus or minus the cash flows from operating, investing, and financing activities equals the end of period cash reported on the balance sheet.
• B) the cash at the beginning of the period plus or minus the net income equals the end of period cash reported on the balance sheet.
• C) the cash at the beginning of the period plus or minus assets and liabilities equals the end of period cash reported on the balance sheet.
• D) the cash at the beginning of the period plus or minus the cash flows from operating activities equals the end of period cash reported on the balance sheet.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after accounting for purchases and sales.

Brown Bears

Brown bears are large bear species found across various parts of northern Eurasia and North America, known scientifically as Ursus arctos.

Beginning Inventory

The amount of inventory that a business has on hand at the start of an accounting period.

Net Sales

The total revenue a company receives from its activities after deducting returns, allowances for damaged or missing goods, and discounts.