The category that is generally considered to be the best measure of a company\'s

Question

The category that is generally considered to be the best measure of a company's. ability to continue as a going concern is a.cash flows from operating activities. b.cash flows from investing activities. c. cash flows from financing activities. d.usually different frcra year to year. 18.In preparing a statement of cash flows, a conversion of bonds into common stock will be reported in a.the financing section. b.the "extraordinary" section. c.a separate schedule or note to the financial statements. d.the stockholders' equity section. 19.Which one of the following affects cash during a period? a.Recording depreciation expense b.Declaration of a cash dividend c.Write-off of an uncollectible account receivable d.Payment of an accounts payable 20.In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is a.added to net income. b.deducted from net income. c.ignored because it does not affect cash. d.not reported on a statement of cash flows. 21. Meyer company reported net income of $40,000 for the year. During the year, accounts receivable increased by $14,000. accounts payable decreased by $6,000 and depreciation expense of $10,000 was recorded. Net cash provided by operating activities for the year is a.$30,000. b.$70,000. c.$38,000. d.$40,000. 22. Flynn Company reported a net loss of $10,000 for the year ended December 31, 2002. During the year, accounts receivable decreased $10,000, merchandise inventory increased $16,000, accounts payable increased by $20,000, and depreciation expense of $10,000 was recorded. During 2002, operating activities a.used net cash of $14,000. b.used net cash of $24,000. c.provided net cash of $14,000. d.provided net cash of $24,000.. In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is a.deducted from net income. b.added to net income. c.ignored because it does not affect income. d.ignored because it does not affect expenses.

Explanation / Answer

Dear Student, only one question is allowed at a time.

17)

Operating activities is the representation that the company is generating enough cash to finance its activities.

So, option A is the correct option.

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