Question

The information to prepare the statement of cash flows comes from all of the following sources...

The information to prepare the statement of cash flows comes from all of the following sources except

A.
Adjusted trial balance.

B.
Additional transaction data about cash provided or used during the period.

C.
Comparative balance sheets.


.
Current income statement.
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Answer #1

The information to prepare the statement of cash flows comes from all of the following sources except:

Option A: Adjusted Trial Balance

As per the other options, Comparative Balance Sheets shows the increase or decrease in cash between two consecutive Balance Sheets, and the net effect of Cash Flow is put on the Cash Flow Statement. Current Income Statement shows the Net Earnings and with it, the Cash Flow Statement is deduced.Any additional transaction data about cash should also form a part of this Statement.

Adjusted Trial Balance is not used as it does not show any detailed transaction history and merely displays the Ending Balances. Hence, it is not used.

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