chapter13

The statement of cash flows shows not only the amount of cash used during a particular​ time, but also how the cash was used.

TRUE

All of the following would be done when calculating the change in cash from operating activities under the indirect method except

deduct the purchase of equipment.

A statement of cash flows is generated to show

the inflow and outflow of cash during the time period.

The three sections of the Statement of Cash Flows are operating​ activities, investing​ activities, and financing activities.

true

A cash flow statement shows​ $29,000 from​ financing, ($9,200) from investing and​ $23,000 from operations. The cash balance must have increased or decreased by

​$42,800.

The correct order of the sections on a statement of cash flows is

​operating, investing, financing.

Which of the following parties would have an interest in the amount of cash at a​ company?

A. Creditors expecting consumers to repay loans and interest B. Employees expecting payment for their work C. Investors expecting a dividend D. CORRECT ANSWER All of the above are parties interested in the amount of cash at a company

Which of the following is the primary source of cash over the life of a​ business?

OPERATING ACTIVITIES

Which of the following​ is/are created by operating​ activities?

Revenues and expenses

Which of the following items is NOT one of the three sections on the statement of cash​ flows?

Cash from capital activities

Investing activities include activities that affect the current asset section of the balance sheet.

FALSE

The statement of cash flows does not report why cash increased or decreased during the period.

FALSE

On the statement of cash​ flows, which of the following sections includes the issuance of stock and the payment of​ dividends?

FINANCING SECTION

The​ ________ section from the statement of cash flows includes activities that affect the buying and selling of long term assets on the balance sheet.

INVESTING

On the statement of cash​ flows, which of the following sections would include the purchase of a building paid for with​ cash?

INVESTING SECTION

The​ ________ section from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet.

OPERATING

For purposes of the statement of cash​ flows, "cash" includes cash on​ hand, cash in the bank and cash equivalents.

TRUE

Operating activities on the statement of cash flows include activities that affect net​ income, current liabilities and current assets.

TRUE

What will appear in the operating activities section related to accounts​ receivable?

The increase of $ 19000 will be subtracted from net income.

Regarding the statement of cash​ flows, which of the following is true​?

a. The statement of cash flows covers a span of time and is dated​ "Year Ended,​ Month, Day, and​ Year." B. The statement of cash flows reports why cash increased or decreased during the period. C. The statement of cash flows shows where cash came from and how cash was spent.