Preparation of the statement of cash flows does not involve:
A) Computing the net increase or decrease in cash.
B) Computing the profit compared to the net increase or decrease in cash.
C) Computing and reporting net cash provided or used by operations.
D) Computing and reporting net cash provided or used by investing activities.
E) Computing and reporting net cash provided or used by financing activities.

Question

Quizplus · Accepted Answer

The preparation of the statement of cash flows involves computing the net increase or decrease in cash, reporting net cash provided or used by operations, investing activities, and financing activities. However, it does not involve computing the profit compared to the net increase or decrease in cash.

Preparation of the Statement of Cash Flows Does Not Involve