Under the Spreadsheet Method of Preparing the Cash Flow Statement

question 4

True/False

Under the spreadsheet method of preparing the cash flow statement, a company uses a spreadsheet to determine and reconstruct the changes in cash for each asset, liability, and shareholder's equity.

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Definitions:

Unearned Revenue

Money received by an entity for a service or product that has yet to be delivered or completed.

Interest Revenue

Income earned from lending money or from investments in interest-bearing accounts or securities.

Matching Revenue

The accounting principle of recognizing revenue and the related expenses in the same accounting period to accurately report profit.

Incurred Expenses

Costs that have been realized or consumed, typically through the operation of a business.