ACC 231 Chapter 11 Question and
answers already passed 2025/2026
Cash Flow Statement - correct answer ✔-assess a firm's ability to generate cash and compare cash
flows between entities.
-positive cash flows permit a company to : take advantage of market opportunities, pay dividends to
owners, expand its operations, and replace needs assets
-financial analysts consider cash flow an important indicator of a company's financial health
Statement of Cash Flows - correct answer ✔-Cash is reported in the balance sheet as an amount at a
specific date.
-Statement of Cash Flows details the increase in cash from one period to the next (4):
-Operating
-Investing
-Financing
Operating - correct answer ✔day to day business operations
Investing - correct answer ✔purchase and Sale of long-term assets
Financing - correct answer ✔activities to raise cash and pay back creditors and pay stockholders
dividends
Determining Cash from Operating Activities (indirect method) - correct answer ✔-Start with Net
Income (accrual basis) and take out (reverse the effect of) non cash items and items that don't have to
do with day to day activities
-Depreciation Expense (non cash item)
answers already passed 2025/2026
Cash Flow Statement - correct answer ✔-assess a firm's ability to generate cash and compare cash
flows between entities.
-positive cash flows permit a company to : take advantage of market opportunities, pay dividends to
owners, expand its operations, and replace needs assets
-financial analysts consider cash flow an important indicator of a company's financial health
Statement of Cash Flows - correct answer ✔-Cash is reported in the balance sheet as an amount at a
specific date.
-Statement of Cash Flows details the increase in cash from one period to the next (4):
-Operating
-Investing
-Financing
Operating - correct answer ✔day to day business operations
Investing - correct answer ✔purchase and Sale of long-term assets
Financing - correct answer ✔activities to raise cash and pay back creditors and pay stockholders
dividends
Determining Cash from Operating Activities (indirect method) - correct answer ✔-Start with Net
Income (accrual basis) and take out (reverse the effect of) non cash items and items that don't have to
do with day to day activities
-Depreciation Expense (non cash item)
