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:

Gauge Pressure

The measurement of pressure relative to ambient atmospheric pressure, used in various applications from tires to hydraulic systems.

Truck A/C System

The air conditioning system in a truck, designed to cool the cabin area for the comfort of the occupants.

Disposable Refrigerant Can

A single-use container used for holding refrigerant, typically for automotive air conditioning systems.

High Side

In refrigeration and air conditioning systems, it refers to the part of the system where the refrigerant is under high pressure, typically after compression.