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 financial position.
C) a comparative statement of financial position.
D) a comparative income statement.

Question

Quizplus · Accepted Answer

A comparative statement of financial position is used to determine the changes in cash by comparing the current period's financial position with the previous period's, highlighting the net increase or decrease in cash.

In Preparing the Statement of Cash Flows, Determining the Net