The Statement of Cash Flows Must Include a Note Reconciling

question 17

Multiple Choice

The statement of cash flows must include a note reconciling:

• A)profit and cash flow from operations.
• B)the business bank balance with the bank statement balance.
• C)accrual accounting and historical cost accounting.
• D)opening equity with closing equity.

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Definitions:

Financial Reporting

Financial Reporting is the process of producing statements that disclose an organization's financial status to management, investors, and the regulatory authorities.

AICPA

The American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and principles that guide financial reporting and accounting practices in the United States.

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition, not adjusted for inflation or changes in market value.