Which One of the Following Items Is Not Necessary in Preparing

question 214

Multiple Choice

Which one of the following items is not necessary in preparing a statement of cash flows?

• A) Determine the change in cash
• B) Determine the cash provided by operations
• C) Determine cash from financing and investing activities
• D) Determine the cash in all bank accounts

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Definitions:

NSF Check

A check that cannot be processed because the drawer's account does not have sufficient funds, standing for Non-Sufficient Funds.

Deposit In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

Ledger

A comprehensive collection of a company's financial accounts.

Petty Cash Fund

A small amount of cash kept on hand by a business for making immediate payments for miscellaneous small expenses.