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

Question

Quizplus · Accepted Answer

A comparative balance sheet is used to determine the net increase or decrease in cash by comparing the cash balances at the beginning and end of the period.

In Preparing the Statement of Cash Flows, Determining the Net