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

question 80

Multiple Choice

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

• A)The T-account approach works well for all companies.
• B)The statement of cash flows cannot be prepared directly from the spreadsheet because additional information is needed.
• C)The spreadsheet is needed when companies face complex situations.
• D)The spreadsheet can only be used if the indirect method for operating activities is also used.

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Definitions:

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion.

Bar Graph

A graph that uses bars of varying heights or lengths to show the comparative sizes of different observations of a variable.

Linear Curve

A linear curve is a straight line graphically showing the relationship between two variables, with a constant slope and no curvature.

Slope

In mathematics, the measure of the steepness or incline of a line, expressed as the ratio of the vertical change to the horizontal change.