Asked by Nahin Muntasir on Jul 17, 2024
Verified
To determine the net cash provided (used) by operating activities it is necessary to analyze
A) the current year's income statement.
B) a comparative balance sheet.
C) additional information.
D) All of these answers are correct.
Comparative Balance Sheet
Financial statements that display the financial position of a company at different points in time side-by-side, to facilitate comparison.
Income Statement
An income statement is a financial document that reports a company’s financial performance over a specific accounting period, outlining revenues, expenses, and net income.
Additional Information
Supplementary data or facts that provide more context or clarification to the main content or findings.
- Comprehend the indirect approach to determining cash flows resulting from operational activities.
- Understand the modifications needed to transform net income into net cash generated from operating activities.
- Compute the net cash flow from operating, investing, and financing activities.
Verified Answer
VV
Vaamitha VarathalingamJul 19, 2024
Final Answer :
D
Explanation :
To determine the net cash provided (used) by operating activities, we need to analyze the current year's income statement, a comparative balance sheet, and additional information. Therefore, option D is the best answer as it includes all three elements needed for such analysis.
Learning Objectives
- Comprehend the indirect approach to determining cash flows resulting from operational activities.
- Understand the modifications needed to transform net income into net cash generated from operating activities.
- Compute the net cash flow from operating, investing, and financing activities.