The third (final) step in preparing the statement of cash flows is to analyze ch

Question

The third (final) step in preparing the statement of cash flows is to

analyze changes in noncurrent asset and liability accounts.

compare the net change in cash with the change in the cash account reported on the balance sheet.

determine net cash provided by operating activities.

list the noncash activities.

analyze changes in noncurrent asset and liability accounts.

compare the net change in cash with the change in the cash account reported on the balance sheet.

determine net cash provided by operating activities.

list the noncash activities.

Explanation / Answer

b. compare the net change in cash with the change in the cash account reported on the balance sheet.

Statement of cash flows is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.

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