Which of the following is not needed to prepare a statement of cash flows?
A)Statement of retained earnings.
B)Comparative balance sheet.
C)Additional information on financing and investing activities.
D)Income statement.

Question

Quizplus · Accepted Answer

A statement of retained earnings is not needed to prepare a statement of cash flows. The statement of cash flows shows the inflows and outflows of cash and cash equivalents during a specific period, while the statement of retained earnings shows the changes in retained earnings due to net income, dividends, and other adjustments. The comparative balance sheet, income statement, and additional information on financing and investing activities are required to prepare a statement of cash flows.

Which of the Following Is Not Needed to Prepare a Statement