Question 1.1.The objective of the statement of cash flows is___________________________. (Points : 1)

to provide a way to audit the bank statement for accuracy to provide information that is helpful in assessing the amounts, timing, and uncertainty of n organizations cash inflows and outflows to provide information needed for management to determine how much inventory to buy not listed here

Question 2.2.Cash flow from operating activities includes______________________________. (Points : 1)

Cash receipts from sales of goods or services Cash receipts from the collection or sale of accounts and notes receivable Cash receipts from interest and dividends All of the items listed here

Question 3.3.Cash flow from investing activities includes______________________________. (Points : 1)

two of the items listed here none of the items listed here receipts from collection or sale of loans made by the enterprise receipts from the sale of property, plant, and equipment

Question 4.4.Cash flow from financing activities includes______________________________. (Points : 1)

All cash flow not classified as cash flow from operating activities Receipts from the sale of equity instruments of other enterprises Proceeds from issuing equity instruments Nothing listed here

Question 5.5.Noncash investing and financing activities_______________________________. (Points : 1)

Are included in a separate section of the statement of cash flows Are not included in the statement of cash flows Are important to an investor but do not have to be listed in the statement of cash flows unless they are significant Have no impact on cash so are excluded by GAAP from the statement of cash flows

Question 6.6.Cash received from customers________________________________________. (Points : 1)

Would be the same as total sales since companies do not sell to customers on account Would vary from total sales based on changes in inventory levels of finished goods Would be the same as total sales adjusted for changes in accounts receivable Will always be less than total sales

Question 7.7.When calculating cash paid for inventory________________________________. (Points : 1)

If inventory levels were unchanged during the period then cost of goods sold would equal total purchases If inventory on the balance sheet increased then total purchases exceeded cost of goods sold Once total purchases are determined it is necessary to calculate how much of the purchases were for cash All of these steps are true related to obtaining an accurate balance

Question 8.8.Depreciation________________________________________________________. (Points : 1)

Is a noncash item and can be ignored in both the direct and indirect methods of preparing the cash flow statement Is a noncash item and can be ignored in the direct method of preparing the cash flow statement Is a noncash item and can be ignored in the indirect method of preparing the cash flow statement Is not a noncash item

Question 9.9.When deciding whether to use the direct or the indirect method of preparing the statement of cash flows___________________________________________________________. (Points : 1)

most firms opt for the direct method most firms opt for the indirect method the decision will be made based on which method provides a better ending cash flow position for the firm GAAP recommends the indirect method

Question 10.10.When preparing a statement of cash flows a worksheet______________________. (Points : 1)

Is required Is useful but not required Will create the necessary adjustments automatically Is not a part of preparing a statement of cash flows