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:

Market Basket

A selected set of goods and services used to track changes in prices and inflation over time.

Rate of Inflation

The percentage increase in the general price level of goods and services in an economy over a period of time, typically measured annually.

Labor Force

The segment of the working-population that is actively engaged in or seeking employment, reflecting the availability of labor in an economy.

Discouraged Workers

Individuals who are not actively seeking employment due to believing that no jobs are available for them.