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The income statement shows how much the cash account either increased or decreased during the period. True False

Question

The income statement shows how much the cash account either increased or decreased during the period. True False

The income statement shows how much the cash account either increased or decreased
during the period.
True
False

Solution

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PeytonProfessional · Tutor for 6 years

Answer

False.<br /><br />The income statement shows the revenues and expenses of a company over a period, resulting in a net income or loss. It does *not* directly show the change in the cash account. The **statement of cash flows** is the financial statement that shows how much the cash account changed during the period.<br />
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