41 the cash flow statement a is required by generally accepted accounting principles 4305844

41 the cash flow statement a is required by generally accepted accounting principles 4305844

41) The cash flow statement:

A) is required by generally accepted accounting principles

B) is prepared at the option of management

C) may be combined with the shareholders' equity section of the balance sheet

D) does not have to be completed if a balance sheet is prepared

42) All of the following are cash equivalents except:

A) money market investments

B) investments in Government of Canada Treasury Bills

C) accounts receivable

D) cash

43) All of the following are purposes of the cash flow statement except to:

A) help predict future cash flows

B) evaluate management decisions concerning cash management

C) report the earnings per share

D) determine the ability to pay dividends to shareholders, and interest and principal to creditors

44) All of the following are true of negative cash flow from operations except:

A) Negative cash flow from operations, if sustained, will spell bankruptcy

B) Negative cash flow from operations virtually always warrants investigation

C) Negative cash flow from operations in a single year is not necessarily a danger signal

D) Negative cash flow from operations: is normal for a profitable company

45) Investors analyze the cash flow statement to determine:

A) total interest earned during the period

B) which companies are reporting unearned revenue

C) the debt-to-equity ratio

D) which businesses are expanding and which are cutting back on investments

46) Highly liquid short-term investments that can be converted into cash with little delay are called:

A) notes receivable

B) trading securities

C) cash equivalents

D) prepaids

47) The cash flow statement helps inform the reader about all of the following activities except:

A) the business's ability to generate cash to meet its past obligations

B) the business's ability to generate positive cash flows in future periods

C) stock splits and stock dividends

D) differences between net income and cash flows from operations

48) The cash flow statement is divided into three major categories including:

A) financing, capital, and investing activities

B) investing, operating, and capital activities

C) operating, investing, and financing activities

D) capital, financial, and operating activities

49) The operating activities section of the cash flow statement would include all of the following except cash:

A) payments to suppliers

B) payments for dividends

C) payments for operating expenses

D) collections from customers

50) Cash received on account from a customer would appear in the:

A) investing activities section

B) financing activities section

C) operating activities section

D) operating activities section or the investing activities section

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