The usual first step in preparing the statement of cash flows is computing the net increase or net decrease in cash.

Name: The usual first step in preparing the statement of cash flows is computing the net increase or net decrease in cash.
Brand: Quizplus
Rating: 4.9 (27 reviews)

Question

Quizplus · Accepted Answer

This is correct. The statement of cash flows begins by calculating the change in cash over the accounting period. This information is then used to prepare the statement of cash flows, which shows the sources and uses of cash during the period.

The Usual First Step in Preparing the Statement of Cash