Final answer:
The statement of cash flows always balances.
Step-by-step explanation:
The statement of cash flows always balances. The correct answer is True. The statement of cash flows is a financial statement that shows the inflows and outflows of cash during a specific period. It consists of three sections: operating activities, investing activities, and financing activities.
Each section represents different sources and uses of cash for a company. At the end of the statement, the net cash flow from each section is added or subtracted, and it should equal the change in cash on the balance sheet. Therefore, the statement of cash flows always balances.