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problem1: The primary purpose of the statement of cash flows is to;

[A] Provide information about the cash receipts and cash payments during a period

[B] Facilitate banking relationships

[C] Provide information about the investing and financing activities during a period

[D] Prove that revenues exceed expenses if there is a net income

problem2: Short-term investments are securities that are readily marketable and intended to be converted into cash within the next

[A] Year or operating cycle, whichever is shorter

[B] Year or operating cycle, whichever is longer

[C] 1 year

[D] 2 years.

problem3: The acquisition of land by issuing common stock is

[A] a noncash transaction and would be reported in the body of a statement of cash flows.

[B] only reported if the statement of cash flows is prepared using the direct method.

[C] a noncash transaction which is not reported in the body of a statement of cash flows.

[D] a cash transaction and would be reported in the body of a statement of cash flows.

problem4: The order of presentation of activities on the statement of cash flows is

[A] Financing, operating, & investing

[B] Financing, investing, & operating

[C] Operating, investing, & financing

[D] Operating, financing, & investing

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920566

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