Balances of the Current Asset and Current Liability Accounts at the End

question 91

Essay

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:

Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

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Definitions:

Cash Accounts

Cash accounts are financial accounts that keep track of cash transactions within an organization, including receipts, disbursements, and balances.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Reversing Entry

An entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.

Disposes

Acts of transferring ownership or getting rid of assets, including selling, discarding, or recycling them.