Asked by Prabhjot Bansal on Jun 04, 2024
Verified
The change in cash is equal to the change in liabilities less the change in equity plus the change in noncash assets.
Liabilities
Creditor claims against total assets.
Noncash Assets
Refers to assets that are not in the form of cash or easily convertible to cash, including real estate, equipment, and inventory.
- Comprehend the explanation of cash flow variations via balance sheet accounts.
Verified Answer
CF
Chelysamira FigueroaJun 08, 2024
Final Answer :
False
Explanation :
The correct formula for the change in cash, based on the accounting equation, is the change in liabilities plus the change in equity less the change in noncash assets.
Learning Objectives
- Comprehend the explanation of cash flow variations via balance sheet accounts.
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