Why this is mistaken
A net balance change is a control endpoint. It does not reveal the gross cash, noncash, acquisition, disposal, reclassification, or currency components needed for statement construction.
Where to watch
When this mistake may appear
- Debt increased by $100,000, so borrowing proceeds were $100,000.
Check your work
Your work may contain this mistake if:
- Infers one cash flow from a net balance change without a rollforward.