Question

The document that would be most useful to track spending patterns for the past few months is:

a. Balance sheet
b. Cash flow statement
c. Budget
d. All of the above
e. None of the above

Answer 1

The cash flow statement is the most useful document to track spending patterns for the past few months. Option b is correct.

Step-by-step explanation:

The document that would be most useful to track spending patterns for the past few months is the cash flow statement. The cash flow statement shows the inflows and outflows of cash during a specific period, which helps to track how money is being spent or received.

It provides information about cash inflows from sources such as sales and investments, as well as cash outflows for expenses like rent and salaries. By analyzing the cash flow statement, one can gain insight into spending patterns and make informed decisions about budgeting and managing finances.