To determine the net cash provided (used) by operating activities, it is necessary to analyze
A) the current year's income statement.
B) a comparative balance sheet.
C) additional information.
D) all of these.

Question

Quizplus · Accepted Answer

In order to determine the net cash provided (used) by operating activities, all three elements - the current year's income statement, a comparative balance sheet, and any additional information - must be analyzed. The income statement provides information about revenues and expenses, while the comparative balance sheet shows changes in assets, liabilities, and equity over time. Additional information such as non-cash expenses or gains/losses on asset sales may also impact the calculation of net cash provided/used by operating activities.

To Determine the Net Cash Provided (Used) by Operating Activities