Practicing Success
Practicing Success
CUET Preparation Today
| Which of the following is incorrect about the statement of cash flows? |
It provides information about the cash receipt and cash payments of an enterprise. It reconciles ending cash balance with the balance as per bank statement. It provides information about the operating, investing and financing activities. It explains the deviation of cash from Earnings. |
| It reconciles ending cash balance with the balance as per bank statement. |
| The statement of cash flows primarily provides information about the cash receipts and cash payments of an enterprise related to its operating, investing, and financing activities. It explains how cash moves through these activities and reconciles the change in cash during a period, but it does not specifically reconcile the ending cash balance with the balance as per the bank statement. Reconciliation with the bank statement is typically a separate process involving comparing the company's accounting records with the bank's records to ensure accuracy. |
