If the Statement of Sources and Uses of Cash Shows

question 130

Multiple Choice

If the Statement of Sources and Uses of Cash shows a decrease in cash balance, which of the following changes might have eliminated that decrease?

• A)Increase in cash dividends paid
• B)Increase in accounts payable
• C)Increase in accounts receivable
• D)Increase in inventories

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Definitions:

Financial Statement

Reports outlining the financial standing of a business, incorporating the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Classification of accounts where permanent accounts (real accounts) represent ongoing items that are not closed at the end of the accounting period, whereas temporary accounts (nominal accounts) are closed.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, ensuring accuracy of the figures.

Post-closing Trial Balance

The trial balance prepared after closing entries have been posted to ensure that debits and credits still balance, marking the end of an accounting period.