Asked by Carrie Steel on May 17, 2024
Verified
A statement of cash flows can be prepared using:
A) the reconstruction of ledgers approach.
B) the formula approach.
C) the spreadsheet approach.
D) all of the above.
Spreadsheet Approach
Refers to the use of spreadsheet software to model and analyze financial data, often used in budgeting, forecasting, and financial analysis.
- Utilize AASB 107 while preparing and presenting the statement of cash flows.
Verified Answer
HE
Haroon ElgabalawyMay 22, 2024
Final Answer :
D
Explanation :
All of the mentioned approaches (reconstruction of ledgers, formula, and spreadsheet) are valid methods for preparing a statement of cash flows. Each approach offers a different way to analyze and present the cash inflows and outflows of a business over a period.
Learning Objectives
- Utilize AASB 107 while preparing and presenting the statement of cash flows.
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