Answer to Question #126936 in Accounting for Everlyn

Question

What should you do before producing a Statement of Cash Flows report?
A. Receive all payments
B. Pay all bills
C. Deposit all funds
D. All of these options

Answer 1

You should receive a payments, pay all bills and deposit all funds before producing a Statement of Cash Flows report, which shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. 

So, the correct answer is D.