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Question

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.

The main categories of cash flow activites are

            A, Direct and indirect

            B. Operating, investing, and financing

            C. Noncash investing and financing

            D. Current and long-term

______________________________________________

The purpose of the cash flow statement is to

            A. Predict future cash flows

            B. Evaluate management decisions

            C. Determine the ability to pay liabilities and dividends

            D. All of the above

Financing activities are most closely related to

            A. Current assets and current liabilities

            B. Long-term assets

            C. Long-term liabilities and stockholders' equity

            D. Net income

Which item does not appear on a statement of cash flows prepared by the indirect method?

            A. Collections from customers

            B. Net income

            C. Depreciation

            D. Gain on sale of land

The main categories of cash flow activites are The purpose of the cash flow statement is to Financing activities are most closely related to Which item does not appear on a statement of cash flows prepared by the indirect method?

Explanation / Answer

Financing activities are most closely related to

C. Long-term liabilities and stockholders' equity

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