When Analyzing the Changes on a Spreadsheet Used to Prepare

question 166

Multiple Choice

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 the equity accounts.
• D) Both noncurrent assets and noncurrent liabilities.
• E) Equity accounts only.

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Definitions:

Labor Time

The amount of work hours or effort put in by employees or workers in the production of goods or services.

Annual Interest

The amount of interest paid or earned over a one-year period, typically expressed as a percentage of the principal sum.

Loan Amount

The total sum of money borrowed from a lender that is expected to be repaid with interest.

Interest Rate

This is a fee, calculated as a percentage, that lenders charge borrowers for the use of their money or that borrowers earn on deposits.