ch05 - CHAPTER 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS

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CHAPTER 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS TRUE-FALSE —Conceptual Answer No. Description F 1. Liquidity and solvency. T 2. Limitations of the balance sheet. T 3. Definition of financial flexibility. T 4. Long-term liability disclosures. F 5. Definitions of the balance sheet. F 6. Land held for speculation. T 7. Balance sheet format. F 8. Disclosure of fair values. F 9. Disclosure of company operations and estimates. T 10. Disclosure of pertinent information. F 11. Use of the term reserve. F 12. Adjunct account. F 13. Purpose of statement of cash flows. F 14. Statement of cash flows reporting. T 15. Financial flexibility. T 16. Collection of a loan. T 17. Determining cash provided by operating activities. F 18. Reporting significant financing and investing activities. T 19. Current cash debt coverage ratio. F 20. Reporting other comprehensive income. MULTIPLE CHOICE —Conceptual Answer No. Description d 21. Limitation of the balance sheet. c 22. Uses of the balance sheet. c S 23. Uses of the balance sheet. b S 24. Criticisms of the balance sheet. c P 25. Definition of liquidity. d 26. Definition of net assets. b 27. Current assets presentation. b 28. Operating cycle. d 29. Operating cycle. d 30. Identification of current asset. d 31. Identification of current asset. d 32. Identification of current asset. d 33. Classification of short-term investments. c 34. Classification of inventory pledged as security. b 35. Identification of long-term investments. d 36. Identification of valuation methods. b 37. Identification of current liabilities.
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Test Bank for Intermediate Accounting, Twelfth Edition Answer No. Description d 38. Definition of working capital. b 39. Identification of working capital items. d 40. Identification of long-term liabilities. d 41. Identification of long-term liabilities. d 42. Classification of treasury stock. d 43. Disclosures for common stock. d 44. Classification of investment in affiliate. c 45. Classification of owners' equity. d 46. Classification of assets. d P 47. Identification of contra account. d S 48. Balance sheet supplementary disclosure. d 49. Methods of disclosure. d 50. Disclosure of significant accounting policies. d 51. Disclosure of depreciation methods used. d 52. Required notes to the financial statements. b 53. Identification of generally accepted account titles. c 54. Purpose of the statement of cash flows. c S 55. Statement of cash flows answers. b 56. Classification of cash receipts. b 57. Identify a financing activity. c 58. Cash flow from operating activities. a 59. Identify an investing activity. d 60. Preparing the statement of cash flows. b 61. Cash debt coverage ratio. b 62. Current cash debt coverage ratio. d
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ch05 - CHAPTER 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS

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