Question

When using the spreadsheet (work sheet) for the statement of cash flows, under the indirect method, entries made on the spreadsheet are a.recorded in the journal and posted to the ledger b.not recorded in the journal but are posted to the ledger c.recorded in the journal but not posted to the ledger d.not recorded in the journal or posted to the ledger

Answer 1

Answer:

Option d: Not recorded in the journal or posted to the ledger

Explanation:

The indirect method of statement of cash flows presentation initially starts with net income or loss and there is always anadditions to or deductions from that amount for the items which are a non-cash revenue and expense items. This usually leads to a cash flow that emanated from operating activities.The method as used for the preparation of the statement of cash flows also can be said to entails detailed analysis of net income along withchanges in balance sheet accounts thereby leading to the amount of cash gotten by operating activities.