The preparation of the statement of cash flows includes the calculation of all of the following EXCEPT the ________.
A)net increase (or decrease)in total cash
B)net cash inflows (or outflows)from operating activities
C)net cash inflows (or outflows)from investing activities
D)net increase (or decrease)in retained earnings

Question

Quizplus · Accepted Answer

The preparation of the statement of cash flows includes the calculation of the net increase (or decrease) in total cash, net cash inflows (or outflows) from operating activities, and net cash inflows (or outflows) from investing activities. However, it does not include the calculation of the net increase (or decrease) in retained earnings which is reported on the statement of retained earnings.

The Preparation of the Statement of Cash Flows Includes the Calculation