In preparing the statement of cash flows, determining the net increase or decrease in cash requires the use of
A)the adjusted trial balance.
B)the current period's statement of retained earnings.
C)a comparative statement of financial position.
D)a comparative statement of income.

Question

Quizplus · Accepted Answer

A comparative statement of financial position (balance sheet) is used to determine the net increase or decrease in cash by comparing the cash balances at the beginning and end of the period.

In Preparing the Statement of Cash Flows, Determining the Net