Final answer:
It is true that the Statement of Cash Flows is not prepared from an adjusted trial balance but rather from comparative balance sheets, the current income statement, and additional information.
Step-by-step explanation:
The statement is true. The Statement of Cash Flows is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period. It is prepared using the comparative balance sheets, the current income statement, and additional information, rather than directly from the adjusted trial balance, which is used to prepare other financial statements like the income statement and balance sheet. The Statement of Cash Flows is unique because it focuses specifically on the liquidity and cash position of the company, categorized into operating, investing, and financing activities.