The Spreadsheet Approach to Preparing a Statement of Cash Flows

question 147

Multiple Choice

The spreadsheet approach to preparing a statement of cash flows includes all of the following except:

• A)a debit to intangible assets and a credit to cash flow from investing activities for the purchase of licensing rights.
• B)a decrease in cash flow from operating activities if prepayments exceed amounts expensed.
• C)an increase in cash flow from operating activities if more inventory is purchased than sold.
• D)a credit to contributed capital and a debit to cash flow from investing activities for proceeds of a stock issuance.