A comparative Balance Sheet reports at least two consecutive years of information that can be used to compile a Statement of Cash Flows.

Question

Quizplus · Accepted Answer

A comparative Balance Sheet provides information about changes in assets, liabilities, and owners' equity over a period of time that can be used to prepare a Statement of Cash Flows. Both the Balance Sheet and the Statement of Cash Flows are important financial statements that provide insights into the financial health and performance of a business. Therefore, it is true that a comparative Balance Sheet reports at least two consecutive years of information that can be used to compile a Statement of Cash Flows.

A Comparative Balance Sheet Reports at Least Two Consecutive Years