Felicia is a public accountant.She has been asked to prepare the financial statements for McNick's Auto Body Shop.She is at the stage of the accounting cycle where she wants to summarize all of the data in the accounting ledgers to see whether the figures appear to be correct and balanced.Felicia will need to prepare a statement of cash flows in order to complete this stage of the cycle.

Question

Quizplus · Accepted Answer

The stage described is the preparation of a trial balance, not the statement of cash flows. The statement of cash flows comes later in the accounting cycle.

Felicia Is a Public Accountant