Question

To ensure that the financial statements articulate, it is important that the change in the cash balance on the balance sheet each year agrees with A. the cash provided by or used by operations on the projected statement of cash flows. B. the cash collections from sales in the projected income statement. C. the net change in cash on the projected statement of cash flows. D. the net change in working capital from period to period.

Answer 1

The change in the cash balance on balance sheet must agrees with the the net change in cash on the projected statement of cash flows.

The projected cash flow statement refers to a financial listing of both expected cash inflows and outflows for the upcoming accounting period.

• So, for the full articulati.on of the financial statements, the change in the cash balance on balance sheet must agrees with the the net change in cash on the projected statement of cash flows.

Therefore, the Option A is correct.

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