Sally prepares monthly financial statements for her client, Dent's Auto Body. Now, though, she must summarize the data in the accounting ledgers to determine if the figures are correct and balanced. Sally will prepare a statement of cash flows in order to complete this step of the cycle.

Question

Quizplus · Accepted Answer

Sally is at the step of the cycle where she should prepare a trial balance. The purpose of a trial balance is to summarize all the data in the ledger accounts to determine if the figures are correct and balanced. A statement of cash flows is a financial statement prepared in the fifth stage of the accounting cycle.

Sally Prepares Monthly Financial Statements for Her Client, Dent's Auto