When using the spreadsheet (work sheet) method for the statement of cash flows, indirect method, entries made on the spreadsheet are
A) not recorded in the journal or posted to the ledger
B) recorded in the journal and posted to the ledger
C) recorded in the journal but not posted to the ledger
D) not recorded in to the journal but are posted to the ledger

Question

Quizplus · Accepted Answer

When using the spreadsheet method for the statement of cash flows, entries made on the spreadsheet are not recorded in the journal or posted to the ledger. The purpose of the spreadsheet is to summarize existing information from the journal and ledger in a way that allows for the preparation of the cash flow statement.

When Using the Spreadsheet (Work Sheet) Method for the Statement