*Which of the following is not a primary objective of the cash flow statement?

• To help users assess the overall performance of an enterprise.
• To help users assess the ability of an enterprise to generate cash from internal sources.
• To help users assess the liquidity and solvency of an enterprise.
• To help users assess the ability of an organization to repay debt obligations and to reinvest or make distributions to owners.

*Which statement is correct?

• Management can change its accounting policies if it feels that its previous policy inadequately reflects the nature of the company's operations; or
• Sometimes, new accounting standards come into effect that no longer permit the company's previous policy.
• Both statements are true.
• Neither statement is true.

*An item not reported in the owners' equity section of the balance sheet is:

• Retained earnings appropriated for plant expansion.
• Contributed surplus.
• Future income taxes.
• Other comprehensive income or loss.