To determine the net cash provided (used) by operating activities, it is necessary to analyze
A) the current year's income statement.
B) a comparative balance sheet.
C) additional information.
D) all of these must be analyzed.

Question

Quizplus · Accepted Answer

To determine the net cash provided (used) by operating activities, all of the above must be analyzed. The current year's income statement helps in determining the net income or loss for the period. A comparative balance sheet helps in analyzing the changes that occur in different balance sheet items between two periods. Additional information such as notes to the financial statements may also provide valuable insights into factors that impact the cash flows from operating activities. Therefore, all of these are important in determining the net cash provided (used) by operating activities.

To Determine the Net Cash Provided (Used) by Operating Activities