Which one of the following items is not necessary in preparing a statement of cash flows?
A) Determine the change in cash.
B) Determine the cash provided by operating activities.
C) Determine cash from financing and investing activities.
D) Determine the cash in all bank accounts.

Question

Quizplus · Accepted Answer

It is not necessary to determine the cash in all bank accounts when preparing a statement of cash flows. The statement focuses on the changes in cash over a specific period of time and identifies the sources and uses of cash in various activities (operating, investing, and financing). It does not require details about cash in specific bank accounts.

Which One of the Following Items Is Not Necessary in Preparing