1. The primary purpose of a statement of cash flows is to provide relevant information about:

Group of answer choices

A. Differences between net income and associated cash receipts and disbursements

B. An enterprise's ability to generate future positive net cash flows

C. The cash receipts and cash disbursements of an enterprise during a period

D. An enterprise's ability to meet cash operating needs

2. In analyzing a companys financial statements, which financial statement would a potential investor primarily use to assess the companys liquidity and financial flexibility?

Group of answer choices

A. Statement of financial position

B. Income statement

C. Statement of retained earnings

D. Statement of cash flows

3. What would NOT be included in Other Comprehensive Income?

Group of answer choices

A. Realized gain and losses on cash flow hedges

B. Foreign translations adjustments

C. Unrecognized Defined Pension Plan Costs

D. Unrealized gains and loss on available for sales securities and investments

4. Which of the following errors could result in an overstatement of both current assets and stockholders equity?

A. An understatement of accrued sales expenses.

B. Noncurrent note receivable principal is misclassified as current asset.

C. Annual depreciation on manufacturing machinery is understated.

D. Holiday pay expense for administrative employees is misclassified as manufacturing overhead.

5. ___________ , a component of the Income Statement, is used to arrive at ending _____________, a component of stockholder's equity, and ________________, a component of the Comprehensive Income Statement is used to arrive at the ending balance of ________________, also a component of stockholder's equity.

A. net income / retained earnings; other comprehensive income / accumulated other comprehensive income

B. gross profit / retained earnings; other comprehensive income / common stock

C. retained earnings / net income; accumulated other comprehensive income / other comprehensive income

D. net income / total stockholders equity; discontinued operations / additional paid in capital