Understand one question can be asked but I will guarantee a thumbs up for the extra effort. This content I must study for a quiz so explanation would be great as well.

The statement of cash flows is typically used to determine if a company can:

A. generate enough cash to acquire another company.

B. generate enough cash to pay cash dividends to stockholders

C. generate enough cash to pay an increase in employee wages

D. generate enough cash to buy equipment

The FASB requires a separate schedule reconciling, cash flows from operating activities and net income when which method is used?

A. Gross method

B. indirect method

C. Net Method

D. Direct Method

How many classifications of cash flows appear on the statement of cash flows.

A. 1

B. 2

C. 3

D. 4

Cash received from interest and dividends is classified on the statement of cash flows as:

A. Operating cash inflows

B. investing cash inflows

C. financing cash inflows

5. Which of the following

Which of the following is a cash flow classified as an operating activity?

A. Cash payments to taxing authorities

B. Cash receipt from collection of long-term notes

C. cash payments fro cash dividends to stockholders

D. Cash receipt from issuing long-term debt

Cash flows related to buying and selling long-term assets are classified as:

A. operating activities

B. investing activities

C. Financing activities

D. non-cash activities

7. cash flows related to long term liabilities and stock holders equity items are classified as:

A. operating activities

B. investing activity

C. financing activity

D. non-cash activity

Issuing a stock dividend is an example of an

A. operating activity

B. investing activity

C. financing activity

D. non-cash activity

9. Which of the following is not an addition to net income when determining the cash flows from operating activity under the indirect method.

A. Depreciation

B. Gain on sale of equipment

C. Decrease in accounts receivable

D. Increase in wages payable

The majority of companies prefer to use which method of preparing the statement of cash flows.

A. Direct method

B. allowance method

C. Indirect method

D. Net method