The Spreadsheet Approach to Preparing a Statement of Cash Flows

Multiple Choice

The spreadsheet approach to preparing a statement of cash flows includes all of the following except:

A) a debit to intangible assets and a credit to cash flow from investing activities for the purchase of licensing rights.
B) a decrease in cash flow from operating activities if prepayments exceed amounts expensed.
C) an increase in cash flow from operating activities if more inventory is purchased than sold.
D) a credit to contributed capital and a debit to cash flow from investing activities for proceeds of a stock issuance.