The final step in preparing the statement of cash flows is to use the information provided in the master T-account for _____ to prepare the formal statement.
A)Cash
B)Funds
C)Operations
D)Changes in accounts
E)none of the above

Question

Quizplus · Accepted Answer

The statement of cash flows summarizes the sources and uses of cash during a specific period, and it includes three sections: cash flows from operating, investing, and financing activities. The final step in preparing the statement of cash flows is to use the information provided in the master T-account for cash to prepare the formal statement. Therefore, the correct answer is A) Cash.

The Final Step in Preparing the Statement of Cash Flows