Question1: The primary purpose of the statement of cash flows is to;
[A] Provide information about the cash receipts and cash payments during a period
[B] Facilitate banking relationships
[C] Provide information about the investing and financing activities during a period
[D] Prove that revenues exceed expenses if there is a net income
Question2: Short-term investments are securities that are readily marketable and intended to be converted into cash within the next
[A] Year or operating cycle, whichever is shorter
[B] Year or operating cycle, whichever is longer
[C] 1 year
[D] 2 years.
Question3: The acquisition of land by issuing common stock is
[A] a noncash transaction and would be reported in the body of a statement of cash flows.
[B] only reported if the statement of cash flows is prepared using the direct method.
[C] a noncash transaction which is not reported in the body of a statement of cash flows.
[D] a cash transaction and would be reported in the body of a statement of cash flows.
Question4: The order of presentation of activities on the statement of cash flows is
[A] Financing, operating, & investing
[B] Financing, investing, & operating
[C] Operating, investing, & financing
[D] Operating, financing, & investing