When using the spreadsheet (work sheet)for the statement of cash flows,indirect method,entries made on the spreadsheet are
A) not recorded in the journal or posted to the ledger
B) recorded in the journal and posted to the ledger
C) recorded in the journal but not posted to the ledger
D) not recorded in to the journal but are posted to the ledger

Question

​When using the spreadsheet (work sheet)for the statement of cash flows,indirect method,entries made on the spreadsheet are ​
A) not recorded in the journal or posted to the ledger
B) recorded in the journal and posted to the ledger
C) recorded in the journal but not posted to the ledger
D) not recorded in to the journal but are posted to the ledger

Quizplus · Accepted Answer

Entries made on the spreadsheet for the statement of cash flows using the indirect method are not recorded in the journal or posted to the ledger. The purpose of the statement of cash flows is to reconcile the beginning and ending balances of cash and cash equivalents and to explain changes in cash balances throughout the period. The information is derived from the company's financial statements, such as the income statement and balance sheet, and does not result in any actual journal entries or postings to the ledger.

​When Using the Spreadsheet (Work Sheet)for the Statement of Cash

When Using the Spreadsheet (Work Sheet)for the Statement of Cash