Which of the following variations of the accounting equation describes the preparation of the statement of cash flows?
A)Change in cash = Change in (Liabilities + Stockholders' equity − Noncash assets)
B)Change in cash = Change in (Liabilities − Stockholders' equity + Noncash assets)
C)Change in cash = Change in (Liabilities + Stockholders' equity + Noncash assets)
D)Change in cash = Change in (Liabilities − Stockholders' equity − Noncash assets)

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Cash + Noncash Assets = Liabilities + Stockholders' Equity
Cash = Liabilities + Stockholders' Equity − Noncash Assets
Change in cash = Change in (Liabilities + Stockholders' equity − Noncash assets)

Which of the Following Variations of the Accounting Equation Describes