Which One of the Following Items Is NOT Necessary in Preparing

question 50

Multiple Choice

Which one of the following items is NOT necessary in preparing a cash flow statement?

• A) Determine the change in cash.
• B) Determine the cash provided or used by operating activities.
• C) Determine cash provided or used by financing activities.
• D) Determine the estimated uncollectible accounts receivable.

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Definitions:

Sewage Treatment

Sewage treatment involves the process of removing contaminants from wastewater, primarily from household sewage, to produce an effluent that is safe enough to release into the environment or to be reused.

Water Pollution

The contamination of water bodies (e.g., lakes, rivers, oceans, aquifers) with pollutants that degrade water quality and ecosystem health.

Investing Activities

Part of the cash flow statement that shows the cash spent on and generated from long-term asset operations and investments.

Long-Term Investments

Investments in stocks, bonds, or other assets that a company intends to hold for more than one fiscal year.