In Preparing the Statement of Cash Flows Determining the Net

question 96

Multiple Choice

In preparing the statement of cash flows determining the net increase or decrease in cash requires the use of

• A) the adjusted trial balance.
• B) the current period's balance sheet.
• C) a comparative balance sheet.
• D) a comparative income statement.

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Definitions:

Check Register

A record of all checks written, deposits made, and charges or credits to a bank account.

Cash Balance

The amount of cash in a company's account at any given time.

Deposit

Money placed into a financial institution for safekeeping or to earn interest.

Check Register

A record book or software where all checks written, deposits, and bank transactions are recorded.