The second step of completing the T-account work sheet for generating the statement of cash flows is to prepare a T-account for each balance sheet account other than _____ and enter the beginning and the ending balances.
A)cash and cash equivalents
B)working capital
C)cash, only
D)cash and marketable securities
E)exchanges

Question

Quizplus · Accepted Answer

Cash and cash equivalents are already accounted for in the statement of cash flows, therefore we do not need to prepare a T-account for it. Working capital and exchanges are not balance sheet accounts, so they also do not need to be considered. Marketable securities may be included in the T-account for cash, but they do not need a separate T-account.

The Second Step of Completing the T-Account Work Sheet for Generating