The third (final) step in preparing the statement of cash flows is to
A) analyze changes in noncurrent asset and liability accounts.
B) compare the net change in cash with the change in the cash account reported on the balance sheet.
C) determine net cash provided by operating activities.
D) list the noncash activities.

Question

Quizplus · Accepted Answer

The third (final) step in preparing the statement of cash flows is to compare the net change in cash with the change in the cash account reported on the balance sheet. This is done to ensure that the amounts match and there are no discrepancies.

The Third (Final) Step in Preparing the Statement of Cash