Answered: Which of the following statements…

Which of the following statements concerning the entries made on the spreadsheet used to prepare the statement of cash flows is true? a.The entries are not posted to the ledger.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following statements concerning the entries made on the spreadsheet used to prepare the statement of cash flows is true?

a.The entries are not posted to the ledger.

b.The entries are used in preparing the data on the spreadsheet.

c.The entries are used in summarizing the data on the spreadsheet.

d.All of these choices are correct.

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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