Question

12.Where is the adjustment to a company’s cash balance reported? A. General ledger B. Income Statement...

12.Where is the adjustment to a company’s cash balance reported?

A. General ledger

B. Income Statement

C. Cash Flow Statement

D. Statement of owner’s equit

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Answer #1

Answer

C. Cash Flow Statement

Explanation:

Statement of Cash flows records the cash inflows and outflows during the month. Any adjustment of cash is reported in the cash flow statement.

General ledger does not adjustment as adjustments are made in final accoy=unts and general ledger is not a part of final accounts.

Income Statement records revenues and expenses, and not assets and liabilities.

The statement of owner’s equity shows any changes in shareholder's funds and changes in reserves.

Clearly, option C is correct and other options are incorrect.

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