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:

Hydraulic Circuit

A system using hydraulic fluid under pressure to transfer force and motion between components.

Gallons Per Minute

A measure of fluid flow rate that indicates how many gallons of fluid pass a particular point in one minute.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere, typically measured at sea level.

Hydraulic Circuit

A system of interconnected components using pressurized fluid to perform work, such as moving machinery parts.