Question
1. How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method? A) A decrease in
1. How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method? A) A decrease in cash flows from investing activities. B) A decrease in cash flows from operating activities. C) Not reported. D) An increase in cash flows from operating activities.
2. Which of the following is not required by generally accepted accounting principles? A) Earnings per share. B) Disclosure notes. C) Statement of cash flows. D) Cash flow per share.
3. Which of the following is not an inflow of cash? A) Cash borrowed on a short-term note. B) Cash borrowed on a long-term note. C) Depletion. D) Sale of a computer.
4. The primary objective of the statement of cash flows is to provide information about a company's: A) Cash receipts and disbursements. B) Profitability. C) Noncash financing and investing activities. D) Financial position.
5. Which one of the following financial statements does not report amounts primarily on an accrual basis? A) Statement of cash flows.
\ B) Income statement
C) Balance sheet. D) Statement of shareholders' equity.
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