Question Details

The information in a statement of cash flows 



1.	Which of the following steps is not required in preparing the statement of cash flows?
a.	Determine the net change in cash.
b.	Determine the net cash provided by operating activities.
c.	Determine cash from investing and financing activities.
d.	Determine the change in current assets.

	2.	Financing activities involve
a.	lending money to other entities and collecting on those loans.
b.	cash receipts from sales of goods and services.
c.	acquiring and disposing of productive long-lived assets.
d.	long-term liability and owners' equity items.

	3.	The information to prepare the statement of cash flows usually comes from each of the following except
a.	the comparative balance sheet.
b.	the prior year- income statement.
c.	additional information.
d.	the current income statement.

4.	The statement of cash flows is prepared from all of the following except
a.	the adjusted trial balance.
b.	comparative balance sheets.
c.	selected transaction data.
d.	the current income statement.

	5.	The information in a statement of cash flows will not help investors to assess the entity's ability to
a.	generate future cash flows.
b.	obtain favorable borrowing terms at a bank.
c.	pay dividends.
d.	pay its obligations when they become due.





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