When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section. true or false

True

Explanation:

An Increase in the Accounts Payable is a cash Inflow. Cash Inflows are depicted with a debit entry in the statement of cash flows section to reflect increase in cash and cash equivalents.

Increase in Accounts Payable also increases the liability of Accounts Payable. Increases in Liabilities are depicted by a Credit entry in the balance sheet section.

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