When Analyzing the Changes on a Spreadsheet Used to Prepare

question 48

Multiple Choice

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from investing activities generally are affected by:

• A)Net income,current assets,and current liabilities.
• B)Noncurrent assets.
• C)Noncurrent liability and equity accounts.
• D)Both noncurrent assets and noncurrent liabilities.
• E)Equity accounts only.

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Definitions:

Stock Split

A stock split occurs when a company divides its existing shares into multiple ones to boost liquidity without changing the overall market value of shareholders' equity.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor necessary to create the product.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct labor, raw materials, or production costs.

Sales Revenue

Income received from selling goods or services before any costs or expenses are deducted.