11) The primary purpose of the statement of cash flows is to provide information about the

a) entity's ability to generate future cash flows.

b) reasons for the difference between net income and net cash flow from operating activities.

c) entity's cash receipts and cash payments during a period.

d) entity's ability to pay dividends and meet obligations.

12) Under ASPE, activities involving the cash effects of transactions that enter into the determination of net income generally are

a) financing activities.

b) investing activities.

c) noncash investing and financing activities.

d) operating activities.

13) Net cash flow from operating activities is determined by eliminating

a) earned revenues from net income.

b) incurred expenses from net income.

c) cash expenses and cash revenues from net income.

d. noncash expenses and non-cash revenues from net income.

14) The method of calculating net cash flow from operating activities that results in the presentation of a condensed cash receipts and cash disbursements statement is the

a) reconciliation method.

b) indirect method.

c) direct method.

d) cash flow method.

15) Which method adjusts net income for items that affected reported net income but did not affect cash?

a) direct

b) adjustment

c) accrual

d) indirect