information in a Statement of Cash Flows

Question 1
Cash equivalents would NOT include

A
Savings account balances.

B
Treasury bills.

C
Treasury note purchases three years ago, but maturing in two months.

D
Money market funds.
Question 2

In the statement of cash flows, the change in cash is explained in terms of all of the following EXCEPT:

A
Operating activities.

B
Investing activities.

C
Financing activities.

D
Income activities.

Question 3
When can information in a Statement of Cash Flows substitute for information in an income statement?

A
During an expanding business cycle.

B
During a contracting business cycle.

C
Always.

D
Never.
Question 4
All of the following are considered noncash investing and financing activities EXCEPT:

A
Exchange of a noncash asset or liability for another.

B
Conversion of debt to equity.

C
Acquisition of assets either by assuming directly related liabilities or by means of a capital lease.

D
Sale of a piece of equipment for exactly what it was purchased for.

Question 5
Which of the following is a cash flow from an operating activity?

A
Interest received.

B
Payment for a patent.

C
Proceeds from bond issuance.

D
Trading of a building for land.
Question 6
The accounting principle that requires significant noncash activities to be disclosed is the

A
Golden Rule Principle.

B
Full Disclosure Principle.

C
GAAP Cash Flows Mandate.

D
Tell All Requirement.
Question 7
All of the following are examples of cash outflows from operating activities EXCEPT

A
Payments of interest on debt.

B
Loans made to other parties.

C
Payments to suppliers for goods and services.

D
Checks written to employees for labor provided.

Question 8
The liquidity of income ratio used in financial analysis is

A
Current assets/current liabilities.

B
Cash flow from operations/current liabilities.

C
Cash flow from operations/net income.

D
Total cash flow/net income.

Question 10
An example of cash provided by investing activity is

A
Purchase of land.

B
Sale of a building.

C
Repayment of a mortgage.

D
Buy back of outstanding stock.

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