When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

Question

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An increase in accounts payable represents a decrease in cash, which is entered as a debit in the statement of cash flows section. The corresponding credit in the balance sheet section reflects the increase in accounts payable.

When Using a Spreadsheet to Prepare the Statement of Cash