The Third (Final) Step in Preparing the Statement of Cash

question 91

Multiple Choice

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

• A) analyze changes in non-current asset and liability accounts.
• B) compare the net change in cash with the change in the cash account reported on the statement of financial position.
• C) determine net cash provided by operating activities.
• D) list the non-cash activities.

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Definitions:

Allowance Account

A contra-asset account used to estimate future uncollectible debts from customers, reducing the total amount of outstanding receivables.

Gross Accounts Receivable

The total amount of money owed to a company by its customers before deducting any allowance for doubtful accounts.

Date Violence

Refers to physical, sexual, psychological, or emotional violence within a dating relationship, including stalking.

Date Rape

A form of sexual assault where the perpetrator and victim have a prior acquaintance or are on a social outing together when the assault occurs.