"The balance sheet equation helps explain the income statement and balance sheet, but it is not useful in interpreting the statement of cash flows." Do you agree? Explain Liabilities Stockholders' Equity - Noncash Assets, where the left side of the equation is the change in cash and the right hand A. No. The balance sheet equation underlies all financial statements. It can be recast as Cash represents the causes of the change in cash B. No, the balance sheet equation is useful when interpreting cash flows from operations using the direct method; however, the balance sheet equation is not useful when interpreting cash flows from operations using the indirect method. Liabilities Stockholders' Equity Noncash Assets, where the left side of the equation is the change in cash and the right C. No. The balance sheet equation underlies all financial statements. It can be recast as Cash hand represents the causes of the change in cash D. Yes. The balance sheet equation only shows the amount of cash a company holds at the close of business on the balance sheet date. It does not show how the company generated this cash balance