CH16.3 Do In Class The Statement of Cash Flows Circle the letter of the best res
ID: 2430073 • Letter: C
Question
CH16.3 Do In Class The Statement of Cash Flows Circle the letter of the best response. of the following is not an appropriate use of the statement of cash flos? A. Predict ability to pay debts B. Evaluate managers' decisions C. Analyze profitability and liquidity D. Predict future cash flows 2. The main types of cash flow activities are A. financing, investing, operating, and free. B. investing, operating, and financing. C. operating, classifying, and investing. D. financing, operating, classifying, and noncurrent. Cash flows from interest received are reported in the statement of cash flows in the A. operating activities section. B. investing activities section. C. financing activities section. D. schedule of noncash activities. 3. 4. The purchase of equipment by isuing a long-term note payable for the entire amount is reporte the statement of cash flows in the A. operating activities section. B. investing activities section. C. financing activities section. D. schedule of non-cash investing and financing activities.Explanation / Answer
Answer to Question 1.
Option B i.e. Evaluate Managers’ decision.
Statement of Cash flow record cash generated from various activities during a period of time and Cash available at the end of the period.
Answer to Question 2.
Option B i.e. Investing, Operating and Financing
Main activities of Cash Flow are Operating Activities, Investing Activities and Financing Activities.
Operating Activities record Cash flow from Current Assets and Current Liabilities. Investing Activities records cash flow from Non Current Assets. Financing Activities record Cash flows from various finance method.
Answer to Question 3.
Option B i.e. Investing Activities.
Cash Flows from Interest incurs due to various amount invested and Investing activities record cash flow from various Non-Current Assets.
Answer to Question 4.
Option D i.e. Schedule of Non-Cash investing and Financing Activities.
Schedule of Non-Cash investing and Financing Activities record transaction in Non-Current Assets and financing method which don’t involve any cash.