When Analyzing the Changes on a Spreadsheet Used to Prepare

question 79

Multiple Choice

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing 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:

Lock-up Clutch

A mechanism used in automatic transmissions that locks the engine directly to the transmission's output, improving fuel efficiency and performance.

Overrunning Clutch

A drive-protection mechanism that prevents a drive member from being driven; for instance, after a starter motor has started the engine, the overrunning clutch prevents the engine from driving the starter and damaging it.

Flex Plate

A metal disc that connects the engine to the torque converter in automatic transmissions, allowing power transfer.

Driven Member

A component in a mechanical system that receives motion or power from another component, rather than generating it.