Regarding the use of a spreadsheet for the preparation of the statement of cash flows, which of the following statements is true?

Question

Quizplus · Accepted Answer

The use of a spreadsheet is particularly helpful for companies that face complex situations, such as those with multiple business segments, non-cash transactions, or significant investing and financing activities. The T-account approach may not work as well in these situations. While additional information may be needed to prepare the statement of cash flows from the spreadsheet, this is not a reason why it cannot be used. Furthermore, both the direct and indirect methods can be used with the spreadsheet approach.

Regarding the Use of a Spreadsheet for the Preparation of the Statement