When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from operating activities generally affect:
A)Net income,current assets,and current liabilities.
B)Noncurrent assets.
C)Noncurrent liability and equity accounts.
D)Both noncurrent assets and noncurrent liabilities.
E)Equity accounts only.

Question

Quizplus · Accepted Answer

The cash flows from operating activities are derived from the income statement and changes in current assets and liabilities. Therefore, they generally affect net income, current assets, and current liabilities. Noncurrent assets and liabilities are mainly affected by cash flows from investing and financing activities, respectively.

When Analyzing the Changes on a Spreadsheet Used to Prepare