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The statement of cash flows explains why the cash balance changed over a period of time. True/False.

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User Bedo
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1 Answer

4 votes

Answer: True

Step-by-step explanation:

True. The statement of cash flows provides information on the sources and uses of cash during a specific period, allowing users to understand why the cash balance changed over that time. It categorizes cash flows into operating activities, investing activities, and financing activities, providing insights into the factors that affected the cash position of an entity.

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