Question

An important advantage of using a spreadsheet to analyze transactions that may need to be reported in the statement of cash flows is to ________?

1) calculate the net income
2) track changes in accounts receivable
3) identify discrepancies in cash flow
4) prepare financial statements

Answer 1

Using a spreadsheet to analyze transactions for the statement of cash flows allows for the identification of discrepancies in cash flow.

Step-by-step explanation:

An important advantage of using a spreadsheet to analyze transactions that may need to be reported in the statement of cash flows is to identify discrepancies in cash flow. Spreadsheets allow for the organization and manipulation of large amounts of financial data, making it easier to track and compare cash flow from various sources. For example, if there is a discrepancy between the cash inflows and outflows recorded in the spreadsheet, it can be an indication of errors or missing transactions that need further investigation.