A statement of cash flows is prepared from the
A) balance sheet from the beginning and the end of the period.
B) general journal.
C) accounts receivable ledger.
D) accounts payable ledger.

Question

Quizplus · Accepted Answer

A statement of cash flows is prepared by analyzing changes in balance sheet accounts from the beginning to the end of the period, along with information from the income statement and other sources. The general journal, accounts receivable ledger, and accounts payable ledger alone do not provide enough information to prepare a statement of cash flows.

A Statement of Cash Flows Is Prepared from the