One of the key financial statements prepared in the fifth step of the accounting cycle is
A) general journal.
B) statement of cash flows.
C) asset summary.
D) social audit.

Question

Quizplus · Accepted Answer

The statement of cash flows is one of the key financial statements prepared in the fifth step of the accounting cycle. It shows the inflow and outflow of cash during a specified period and categorizes them as operating, investing, or financing activities. The other options mentioned are not financial statements and do not provide information about the cash flows of a business.

One of the Key Financial Statements Prepared in the Fifth