Knowledge Check $01$

Which of the following statements about the use of a spreadsheet to prepare the statement of cash flows are true?

Note: Select all that apply.

Check All That Apply

Once the spreadsheet entries are entered on the spreadsheet, they should be then be recorded in the formal accounting records.

As we record spreadsheet entries that explain account balance changes on the spreadsheet, we simultaneously identify and classify the activities to be reported on the statement of cash flows.

Using a spreadsheet to prepare the statement of cash flows does not ensure that all reportable activities are indentified.

When analyzing the accounts, it is convenient to begin with the income statement accounts, followed by the balance sheet accounts.