Regarding the use of a spreadsheet for the preparation of the statement pf cash flows,which of the following statements is true?
A)The T-account approach works well for all companies.
B)The statement of cash flows cannot be prepared directly from the spreadsheet because additional information is needed.
C)The spreadsheet is needed when companies face complex situations.
D)The spreadsheet can only be used if the indirect method for operating activities is also used.

Question

Quizplus · Accepted Answer

The spreadsheet is particularly useful when companies face complex situations, such as changes in accounting methods or multiple business segments. The T-account approach may not work well for all companies, and the statement of cash flows can be prepared directly from the spreadsheet if all necessary information is included. The choice of the direct or indirect method for operating activities does not affect the use of a spreadsheet for the preparation of the statement of cash flows.

Regarding the Use of a Spreadsheet for the Preparation of the Statement