Sources Needed to Prepare the Cash Flow Statement

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which method for creating a statement of cash flow do small businesses prefer using?

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1. Which section of the cash flow statement changes depending on whether the direct or indirect method is used to prepare the statement?

2. What describes the indirect method of preparing a cash flow statement?

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About This Quiz & Worksheet

In order to get a cash flow statement ready, sources and data needed to be prepared. Gauge your knowledge of these sources and sections of these statements using the worksheet and quiz.

Quiz & Worksheet Goals

This assessment is designed to help gauge your knowledge of:

  • What a cash flow statement is
  • The indirect method of preparing a cash flow statement
  • System that small businesses prefer using
  • A section of the cash flow statement that changes with the methods used
  • A direct method of preparing cash flow statements

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about direct and indirect methods for preparing cash flow statements
  • Information recall - access the knowledge you have gained about the purpose of a cash flow statement
  • Reading comprehension - ensure that you draw the most important material from the lesson on data for cash flow statements

Additional Learning

If you would like to gather more knowledge, investigate the available lesson named Sources Needed to Prepare the Cash Flow Statement. Using this lesson, you can cover the following objectives:

  • Review the components of a cash flow statement
  • Understand what cash flow statements tell you
  • Identify sources needed for the direct and indirect method
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