Question : Net Increase/Decrease in cash and cash equivalents + Cash and Cash equivalents at the beginning of the period =..........
Option 1: Cash and Cash equivalents at the end of the period
Option 2: Cash flow from operating Activities
Option 3: Cash flow from investing Activities
Option 4: Cash flow from Financing Activities
Correct Answer: Cash and Cash equivalents at the end of the period
Solution : Answer = Cash and Cash equivalents at the end of the period.
The sum of Net Increase/Decrease in Cash and Cash equivalents + Cash and Cash equivalents at the beginning of the period is equal to Cash and Cash equivalents at the end of the period. The formula described corresponds to the cash flow from operating activities.
Hence, the correct option is 1.
