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

question 156

Multiple Choice

Regarding the use of a spreadsheet for the preparation of the statement of cash flows,which of the following statements is incorrect?

• A) The spreadsheet starts with the beginning balance sheet and concludes with the ending balance sheet.
• B) When companies face complex situations, a spreadsheet can help in preparing the statement of cash flows.
• C) The spreadsheet cannot be used for the direct method.
• D) Accountants can prepare the statement of cash flows directly from the lower part of the spreadsheet.

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Definitions:

Total Cost

Total cost refers to the sum of all expenses incurred in producing a product or providing a service, including both fixed and variable costs.

Finishing Products

The final stages in the production process where goods are completed and made ready for sale.

Cost of Goods Manufactured

The total production cost of goods completed and ready for sale during a specific accounting period.

Cost of Goods Manufactured

The total production cost of goods that are completed and ready for sale during a specific accounting period, including the costs of raw materials, labor, and overhead.