The Statement of Cash Flows Is Prepared from All of the Following

question 54

Multiple Choice

The statement of cash flows is prepared from all of the following except

• A) the adjusted trial balance.
• B) comparative balance sheets.
• C) selected transaction data.
• D) the current income statement.

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Definitions:

Units-of-production Method

a depreciation technique that allocates the cost of an asset over its useful life based on the number of units it produces.

Straight-line Method

A method of calculating depreciation of an asset, which spreads the cost evenly over its useful life.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life.