hapter 11—The Statement of Cash Flows
8. The statement of cash flows
|
a. |
along with the balance sheet and income statement is prepared on the accrual basis. |
|
b. |
along with the balance sheet and statement of retained earnings is dated as of a specific year end date. |
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c. |
along with the balance sheet is used to analyze liquidity. |
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d. |
ties the balance sheet to the statement of retained earnings. |
9. Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?
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a. |
This statement must classify cash flows into three categories: operating, investing, and financing activities. |
|
b. |
Cash equivalents must be combined with cash in preparing this statement. |
|
c. |
Working capital may be used as a substitute for cash in preparing this statement. |
|
d. |
The title for this statement is "Statement of Cash Flows." |
10. Cash flows from acquiring and selling products are classified as
|
a. |
operating activities. |
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b. |
investing activities. |
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c. |
financing activities. |
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d. |
distribution activities. |
11. Cash flows from acquiring and disposing of long-term assets are classified as
|
a. |
operating activities. |
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b. |
investing activities. |
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c. |
financing activities. |
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d. |
purchasing activities. |
12. Cash flows from borrowing and paying off a 90-day bank loan are classified as
|
a. |
operating activities. |
|
b. |
investing activities. |
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c. |
financing activities. |
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d. |
purchasing activities. |
13. Cash flows from issuing and repurchasing stock or issuing and repaying debt are classified as
|
a. |
operating activities. |
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b. |
investing activities. |
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c. |
financing activities. |
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d. |
borrowing activities. |
14. Which of the following is not an operating activity?
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a. |
Cash collections from credit customers. |
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b. |
Cash payments for operating expenses. |
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c. |
Cash receipts for interest earned. |
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d. |
Cash payments for dividends to stockholders. |
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Rating:
/5
Solution: hapter 11—The Statement of Cash Flows