One of the key financial statements prepared in the fifth step of the accounting cycle is:
A)general journal.
B) statement of cash flows.
C) asset summary.
D) social audit.

Question

Quizplus · Accepted Answer

The statement of cash flows is one of the four key financial statements that are prepared during the fifth step of the accounting cycle. The other financial statements prepared during this step include the income statement, balance sheet, and statement of retained earnings. The statement of cash flows shows the inflows and outflows of cash during a period, which helps to assess the liquidity of an organization. This statement is important for investors and creditors to understand how a company is generating and using its cash resources.

One of the Key Financial Statements Prepared in the Fifth