Given the large number of transactions affecting the Cash account during a period, most firms prefer to prepare the statement of cash flows after they have prepared
A)the funds flow statement and income statement.
B)the balance sheet and funds flow statement.
C)the income statement and the balance sheet.
D)the statement of cash receipts and disbursements.
E)none of the above.

Question

Quizplus · Accepted Answer

The statement of cash flows is prepared using information from the income statement and balance sheet. Therefore, most firms prefer to prepare the statement of cash flows after they have prepared the income statement and the balance sheet.

Given the Large Number of Transactions Affecting the Cash Account