Which one of the following items is NOT necessary in preparing a cash flow statement?
A) Determine the change in cash.
B) Determine the cash provided or used by operating activities.
C) Determine cash provided or used by financing activities.
D) Determine the estimated uncollectible accounts receivable.

Question

Quizplus · Accepted Answer

Determining the estimated uncollectible accounts receivable is not necessary for preparing a cash flow statement. The cash flow statement focuses on actual cash inflows and outflows, not on estimations of future uncollectible receivables, which is more relevant to the preparation of the income statement and balance sheet.

Which One of the Following Items Is NOT Necessary in Preparing