Preparation of the statement of cash flows involves:
A)Computing the net increase or decrease in cash.
B)Computing and reporting net cash provided or used by operations.
C)Computing and reporting net cash provided or used by investing activities.
D)Computing and reporting net cash provided or used by financing activities.
E)All of the choices are included in the preparation of the statement of cash flows.

Question

Quizplus · Accepted Answer

All of the choices are included in the preparation of the statement of cash flows. The statement of cash flows summarizes a company's cash inflows and outflows for a specific period, and involves computing the net increase or decrease in cash, as well as reporting net cash provided or used by operations, investing activities, and financing activities. Therefore, all of the listed choices are necessary in preparing the statement of cash flows.

Preparation of the Statement of Cash Flows Involves