Which of the following concerning the preparation of the statement of cash flows is correct?
A)The T-account work sheet for preparing the statement of cash flows provides built-in checks to ensure the full recognition of the effects of each transaction on various accounts.
B)The accountant often prepares a T-account work sheet at the end of the period after preparing the balance sheet and income statement.The work sheet provides the information for preparing the statement of cash flows.
C)The accountant often prepares a T-account work sheet during the period .The work sheet provides the information for preparing the statement of cash flows.
D)Both statement a and b are correct.
E)None of the above are correct.

Question

Quizplus · Accepted Answer

The T-account work sheet is a tool that can help in the preparation of the statement of cash flows by providing a systematic way to organize and analyze transactions and their effects on cash. It offers checks to ensure transactions are fully recognized (A), and it is often prepared at the end of the period after the balance sheet and income statement, to aid in the preparation of the statement of cash flows (B).

Which of the Following Concerning the Preparation of the Statement