what is the purpose of an audit performed by a CPA

Test Your Knowledge81 Test Your Knowledge How do ledger and journal entries interact with one another? s 5. What are the three categories used 2 Explain how the ledger provides the within the statement of cash flows? information needed to prepare the bal- ance sheet. Explain how the ledger provides the information needed to prepare the operating statement. What is the main purpose of the state- Why are these categories important for understanding an organization's cash situation? Differentiate between the direct and the 6. indirect methods for preparing and pre- senting the statement of cash flows. ment of cash flows