chapter14b

chapter14b - Chapter 14b 1. The information in a statement...

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Chapter 14b 1. The information in a statement of cash flows should help investors and creditors assess the entity's ability to pay dividends and meet obligations. A. True B. Fals e 2. The statement of cash flows classifies cash receipts and payments into four activity categories. A. True B. Fals e 3. Investing activities usually involve long-term liability and stockholders' equity accounts. A. True B. Fals e 4. Noncash activities are not reported in the body of the statement of cash flows. A. True B. Fals e 5. The statement of cash flows is not prepared from an adjusted trial balance like the other financial statements are. A. True B. Fals e 6. Under the indirect method, depreciation expense is added to net income.
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A. True B. Fals e 7. When companies dispose of fixed assets, they must eliminate from net income all gains and losses to arrive at cash provided by operating activities. A. True B. Fals e 8. Declaration of cash dividends is a cash outflow that companies report as a financing activity. A. True B. Fals e 9. Free cash flow describes the cash remaining from operating activities after deducting capital expenditures. A.
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This note was uploaded on 01/27/2010 for the course MGT 011A taught by Professor Hancock,john during the Spring '07 term at UC Davis.

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chapter14b - Chapter 14b 1. The information in a statement...

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