For a statement of cash flows to be prepared,an accountant needs to compare changes in two balance sheets.

Question

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A statement of cash flows requires a comparison of two balance sheets, usually the beginning and ending balances, in order to calculate changes in cash and cash equivalents. This information is then used to categorize and report cash inflows and outflows during the period covered by the financial statements.

For a Statement of Cash Flows to Be Prepared,an Accountant