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 balance sheet.
C) a comparative balance sheet.
D) a comparative income statement.

Question

Quizplus · Accepted Answer

A comparative balance sheet, which shows the balances of assets, liabilities, and equity at the beginning and end of the period, is used to determine the changes in cash balance over the period.

In Preparing the Statement of Cash Flows Determining the Net