Which of the Following Is Not Needed to Prepare a Statement

question 4

Multiple Choice

Which of the following is not needed to prepare a statement of cash flows?

• A)Statement of Retained Earnings
• B)Comparative balance sheets
• C)Additional data concerning selected accounts that increase and decrease as a result of investing and/or financing activities
• D)A complete income statement

---

Definitions:

Public Company

A corporation whose shares are traded openly on stock exchanges or markets, making its ownership public.

Small Corporations

Refers to corporations with a limited number of shareholders and reduced regulatory requirements.

Board of Directors

A group of individuals elected to represent shareholders and oversee the major decisions and policies of an organization.

Preemptive Right

A shareholder’s right to purchase a proportionate share of every new offering of stock by the corporation.