Question

The first step in creating a cash flow statement is which of the following?

Recording financial goals

Recording expenses

Recording income

Recording tax information

Answer 1

C. Recording income is the first step confirmed in the lesson

Answer 2

I think the correct answer is the third option.  The first step in the creation of a cash flow statement is the recording of all incomes. A cash flow statement is one financial document that would show the changes in the balance sheets and the income, breaking the analysis into operating, financing and investing activities. It is calculated by making adjustments to the total income by subtracting or adding revenues. So, the first step should be related to collecting all data pertaining income and recording these data.