The T-account approach:
A)may be used with the direct method.
B)creates one big T-account for cash that replaces separate schedules to show all the changes in the cash account.
C)shows cash provided as credits and cash used as debits.
D)does not determine the change in each balance sheet account.

Question

Quizplus · Accepted Answer

The T-account approach is used with the indirect method and creates one big T-account for cash.Cash provided appears as a debit and cash used as a credit.The first step is to determine the changes in the balance sheet accounts.

The T-Account Approach