How are the Cash Flow Statement and Balance Sheet related?

a. The ending cash balance on the Balance Sheet is transferred to the current period Cash Flow Statement>>>>>>>>>>>>>>>>>>>>>>>>>>>>

 b. There is no relation

Balance sheet (also known as the statement of financial position), which describes the financial strength to work in a certain point of time. That is, it determines the net value of the company in the value of the stock department and also provides an insight into the financial leverage (information about business financing arrangements, whether internal or external), liquidity (information on the business's ability to pay its bills as they Merit) and asset management (information about efficiency use asset management business). Income Statement (also known as the statement of financial performance) which describes the financial sustainability of the company. That is, it determines the profit or increases (or otherwise) of revenue over costs to earn revenue for a certain period. It also provides information relating to the adequacy of selling prices (via the gross profit%) and the sufficiency of the profits for the owner's investment (by return on investment) calculation. It seems that the net profit for the period in the equity section of the balance sheet as current profits. Statement of cash flows that describe the source and application of funds received and dispensed during the reporting period by comparing the opening balances with the closing balances for cash or cash equivalent accounts. Relations statement of cash flows together every detail of the income statement and balance sheet to give you a summary of the public image of the cash flows and outflows your own. In particular, the reports on the flow and cash flow with respect to your operating activities, investing activities and financing activities. Cash flow statement teach decision-makers about the movement of cash between where the cash came from and how these funds were used.

OK. Good question!

Let's keep this very simple. When you look at the Balance Sheet, you will find, under the Current Asset, the Cash at bank balance for the current and previous year, right? The two figures would be different, right? That's because you would have received some money and made some payments.

If the owner of the business asks you to explain the movement between the two, you will not be able to answer just based on that balance sheet. Trust me. You will not! Unless you have that little bit of statement which is called the cash flow. It explains how the bank balance from the previous year moved to the current one. Then it goes into a bit more technical in identifying the nature of the money received and payments made into some categories. You guys mentioned it all already.

But note, the Cash Flow is not part of the double entry. Therefore when someo f you guys say the cash balance is transferred into the Balance sheet, I don't quite understand what you mean. 

So, the Cash flow is related to the balance sheet in explaining, in technical details, how the cash balance moved from the beginning to the end of the year.

I hope my answer is satisfactory.

i agree with mr georgei assi  

 a. The ending cash balance on the Balance Sheet is transferred to the current period Cash Flow Statement

If the difference between the changes in all Asset Balances other than Cash for a specific period and the changes in all Liability Balances for that specific period added to the opening Cash Balance for that period, it should give you the closing Cash Balance for that period... Thus giving you an explaination of the Cash Generation

The numbers in the statement of cash flows are derived from the changes in a business’s balance sheet accounts during the year. Changes in the balance sheet accounts drive the amounts reported in the statement of cash flows.

cash flow statement  refered here  reprsents to  the  one shown

along with the financial statements. A cash flow statement is one

which contains only cash transactions.It is a summary of  how funds are receieived  and how funds are spent. wheras  B/S con-

tains not only cash but also other trasactions  also

Both includes in 05 financial statements, Cash flow represents all cash activities and balance sheet represents allocation of assets from entities resources over one fiscal year.

Balance of cash flow also mention in balance sheet either debit or cerdit side.