A comparative balance sheet reports at least two consecutive years of ending cash balances that can be used to compile a cash flow statement.

Question

Quizplus · Accepted Answer

A comparative balance sheet displays the ending balances of assets, liabilities, and equity for at least two consecutive years. These ending balances can be used to calculate changes in cash and other accounts, which can then be used to create a cash flow statement. Therefore, a comparative balance sheet can be used to compile a cash flow statement.

A Comparative Balance Sheet Reports at Least Two Consecutive Years