All of the following statements apply to the statementof cash flows covering a g
ID: 2457583 • Letter: A
Question
All of the following statements apply to the statementof cash flows covering a given period. If a statement applies onlyto the direct format, write D in the space allowed. If astatement applies only to the indirect format, write I inthe space allowed. If a statement applies to both formats, writeB in the space allowed.
________________a. The amount of cash received fromcustomers is listed.
________________b. A purpose of the statement is toreconcile the amount of cash generated by operating activitiesto the amount of net income generated by operatingactivities.
________________c. The amount by which cash receiptsfrom customers differed from sales is reported.
________________d. Certain revenues and expenses thatdid not generate or consume cash are listed.
________________e. The amount of net income is listed onthe face of the statement.
________________f. The amount of cash paid to suppliersof inventory is included.
________________g. The amount of cash paid for taxes isreported.
________________h. The amount of cash raised fromselling bonds to investors is listed on the face of thestatement.
________________i. The purpose of the statement isto reveal the amount of cash received from or paid out for specificoperating activities.
________________j. The amount of cash paid to acquireland and buildings is included.
Explanation / Answer
a D b I c I d I e I f D g B h B i B j B