Which of the following is an acceptable basis for the prepar

Which of the following is an acceptable basis for the preparation of the statement of cash? flows?

A.

Cash

B.

The sum of cash and cash equivalents

C.

The sum of? cash, inventory, and money market accounts

D.

The sum of cash and accounts receivable

Solution

Acceptable basis for the preparation of the statement of cash flows is the sum of cash and cash equivalents

So answer is b) The sum of cash and cash equivalents