The statement of cash flows is a supplement to the balance sheet in a company’s annual report. ATrueBFalseThe statement of cash flows is a supplement to the balance sheet in a company’s annual report. ATrueBFalse Solution A True Because it provides the movement of cash during the period within and outside the organisation. It provides actual cash inflow & outflow from the organisation in various activies like operating, Investing & Financing. Hence, it is a supplement to the balance sheet in a company’s annual report..