When Using a Spreadsheet to Prepare the Statement of Cash

question 46

True/False

When using a spreadsheet to prepare the statement of cash flows,a decrease in accounts payable is entered in the Analysis of Changes column with a debit in the statement of cash flows section and a credit in the balance sheet section.

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Definitions:

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Bonds Payable

A financial accounting term that refers to the bonds a company has issued that must be repaid at a future date.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability per share of stock.

Acid-test Ratio

A financial metric that measures a company's ability to pay its current liabilities without relying on the sale of inventory.