How does the statement of cash flows link to the balance sheet to provide a comprehensive view of cash management?

• A. It provides a summary of the company's liabilities and equity.
• B. It categorizes cash flows into operating, investing, and financing activities, reflecting changes in balance sheet accounts.
• C. It details the company's net income and its effect on cash.
• D. It lists all revenues and expenses, showing their impact on cash.

Answer: (B)