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it is better to have a correct trial balance first
Agreed with colleagues answers
No. Profit and Loss account and a Balance sheet are pivotal for preparing a reconciled cash flow. Net Profit and component of these financial statements are essential for a CF statement. Financials cannot be drawn from irreconciled TB
In fact preparation of Reconciled Cash Flow(RCF) statement is pivotal and focal practice when Trial Balance is not reconciled, as RCF will help in sorting out the Trial Balance Differences and lead to the conclusion that differences now may be looked into Journal Entries ticking-off against each of the ledger of Chart of Accounts.
Moreover it has been observed during preparation of Reconciled Cash Flow posting errors are automatically surfaced and thus more and more accounts of the trial balance are reconciled.
Yes and in fact it may lead to discovery of reasons for the discrepancy in the trial balance.
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