Financial Accounting Ch 14 SCF questions and Answers Latest Update Fully Solved 100%

An increase in accounts payable from the previous to current reporting period would indicate - A portion of expense were accrued and should not be included in the statement of cash flows Which of the following does not accurately discuss the direct method of preparation? - Will include operating activities which did not affect the cash account All of the following are examples of investing activities except - The company pays dividends to shareholders Which of the following best describes operating activities on the statement of cash flows? - Those cash flows associated with core business activities such as those reported on the income statement Although both the statement of cash flows and the income statement report on operating activities, why is net income from operations different from net cash flow from operations? - Because the income statement is prepared using accrual accounting and the statement of cash flows reports only transactions that affect the cash account Which of the following results are not indicative of sustainability per the results of the statement of cash flows? - The majority of the company's cash inflows are a result of cash loans. Which of the following accurately discusses the indirect method of preparation? - Starts with net income from the income statement, then adjusts by non-cash transactions An increase in receivables from the previous to the current period would indicate - That customers have made payments toward their balances, increasing cash inflows from operating activities Which of the following questions will the statement of cash flows not answer for users? - How much money does the business owe creditors?Which of the following types of ratios relate to the company's ability to appreciate value in ownership, or provide a return to investors? - Market ratios All of the following are examples of operating activities except - Making loan payments