Chapter 5 - CHAPTER 5 BALANCE SHEET AND STATEMENT OF CASH...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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 63. Financial flexibility measure. c 64. Calculation of free cash flow. b S 65. Description of financial flexibility. b P 66. Cash debt coverage ratio. P Note: these questions also appear in the Problem-Solving Survival Guide.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern