1. Which of the following is the largest number of shares?

a) outstanding shares

b) approved shares

c) authorized shares

d) issued shares

2. The Statement of Income reflects the overall change in cash flows for an accounting period.

a) True

b) False

3. Major differences between the income statement and the cash flow statement include all of the following except for

a) the income statement measures cash position.

b) the income statement captures mainly operating activities.

c) the income statement does not capture many creditor transactions.

d) the income statement is prepared on an accrual basis.

4. Non-cash expenses will reduce the amount of cash a company is able to generate from its operations.

a) True

b) False