When using the spreadsheet approach for preparing a Statement of Cash Flows using the indirect method,one half of the spreadsheet reflects changes in balance sheet accounts and the other half is used to demonstrate their effect on cash flows.
BT: Knowledge

Question

Quizplus · Accepted Answer

This statement is accurate and describes the basic format of a spreadsheet used for preparing a Statement of Cash Flows using the indirect method. One half of the spreadsheet will show changes in balance sheet accounts such as accounts receivable, accounts payable, and inventory, among others. The other half of the spreadsheet will demonstrate the effect of these changes on cash flows.

When Using the Spreadsheet Approach for Preparing a Statement of Cash