Question & Answer: The statement of cash flows may be viewed in terms of the balance sheet equation. Which of the followi…..

The statement of cash flows may be viewed in terms of the balance sheet equation. Which of the following expressions below is correct?

Change in Cash = Change in (Liabilities + Stockholders’ Equity – Noncash Assets)

Change in Cash = Change in (Stockholders’ Equity – Liabilities + Noncash Assets)

Change in Cash = Change in (Liabilities – Noncash Assets)

Change in Cash = Change in (Stockholders’ Equity – Liabilities)

Expert Answer

Change in Cash = Change in (Liabilities + Stockholders’ Equity – Noncash Assets)
Option A is correct

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