Asked by Marquel WindyBoy on Jun 09, 2024
Verified
The change in cash during a period is equal to the net income for the period.
Change in Cash
The difference in a company's cash balance over a specified period, indicating the net increase or decrease in cash.
Net Income
The total earnings of a company after all expenses and taxes have been subtracted from total revenue.
- Comprehend the relationship between the statement of cash flows and alterations in the balance sheet, and recognize the significance of investment activities.
Verified Answer
CF
Chelysamira FigueroaJun 09, 2024
Final Answer :
False
Explanation :
The change in cash during a period includes not only the net income, but also other activities such as investments, financing activities, and changes in operating assets and liabilities. Therefore, the change in cash cannot be equated to net income alone.
Learning Objectives
- Comprehend the relationship between the statement of cash flows and alterations in the balance sheet, and recognize the significance of investment activities.
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