Asked by
Lucas Hechler
on Oct 15, 2024
Verified
When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from operating activities generally are affected by:
A) Net income,current assets,and current liabilities.
B) Noncurrent assets.
C) Noncurrent liability and equity accounts.
D) Both noncurrent assets and noncurrent liabilities.
E) Equity accounts only.
Operating Activities
Day-to-day actions and transactions related to running a business, such as selling products, paying wages, and purchasing inventory.
Net Income
The final financial gain of a business after removing all expenses, taxes, and costs from the gross income.
- Master the components and preparation technique for the statement of cash flows.
- Establish and evaluate cash flows originating from operational processes using both the direct and indirect formulas.
Verified Answer
HC
Learning Objectives
- Master the components and preparation technique for the statement of cash flows.
- Establish and evaluate cash flows originating from operational processes using both the direct and indirect formulas.