1. The basis for classifying assets as current or noncurrent is conversion to cash within

a. the accounting cycle or one year, whichever is shorter.

b. the operating cycle or one year, whichever is longer.

c. the accounting cycle or one year, whichever is longer.

d. the operating cycle or one year, whichever is shorter.

2. The current assets section of the balance sheet should include

a. machinery.

b. patents.

c. goodwill.

d. inventory.

3. The statement of cash flows provides answers to all of the following questions except

a. where did the cash come from during the period?

b. what was the cash used for during the period?

c. what is the impact of inflation on the cash balance at the end of the year?

d. what was the change in the cash balance during the period?

4. Which of the following events will appear in the cash flows from financing activities section of the statement of cash flows?

a. Cash purchases of equipment.

b. Cash purchases of bonds issued by another company.

c. Cash received as repayment for funds loaned.

d. Cash purchase of treasury stock.

5. Making and collecting loans and disposing of property, plant, and equipment are

a. operating activities.

b. investing activities.

c. financing activities.

d. liquidity activities.