The term cash as used on the statement of cash flows includes all the following EXCEPT:A) cash due from customers within 30 days.B) cash on hand.C) cash equivalents.D) cash in bank Which of the following statements accurately describes the statement of cash flows?A) It shows the relative proportion of debt and assets.B) It shows the link between accrual-based income and the cash reported on the balance sheet.C) It indicates when long-term debt will mature.D) It shows the link between book income and earnings per share. Which of the following is NOT a true statement about the statement of cash flows?A) It shows where cash came from and how it was spent.B) It reports why cash increased or decreased.C) It covers a specific span of time the same as the income statement.D) It shows how the profits or losses of the company were generated. Which one of the following is a principal function of the statement of cash flows?A) To predict future net incomeB) To evaluate management decisionsC) To evaluate the company's earnings per shareD) To predict the growth of company assets

Financial statements are those statements which are made by the companies as it helps in determining…

Answered: The term cash as used on the statement…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 12MCQ: Which of the following sentences regarding the statement of cash flows is false? The statement of...

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The term cash as used on the statement of cash flows includes all the following EXCEPT:
A) cash due from customers within 30 days.
B) cash on hand.
C) cash equivalents.
D) cash in bank

Which of the following statements accurately describes the statement of cash flows?
A) It shows the relative proportion of debt and assets.
B) It shows the link between accrual-based income and the cash reported on the balance sheet.
C) It indicates when long-term debt will mature.
D) It shows the link between book income and earnings per share.

Which of the following is NOT a true statement about the statement of cash flows?
A) It shows where cash came from and how it was spent.
B) It reports why cash increased or decreased.
C) It covers a specific span of time the same as the income statement.
D) It shows how the profits or losses of the company were generated.

Which one of the following is a principal function of the statement of cash flows?
A) To predict future net income
B) To evaluate management decisions
C) To evaluate the company's earnings per share
D) To predict the growth of company assets

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