All of the following may qualify as cash equivalents

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16. All of the following may qualify as cash equivalents except : A. Money market accounts. B. Certificates of deposit. C. U.S. Treasury bills. D. Newly issued corporate bonds. AACSB: Reflective Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 21-02 Define cash equivalents. Spiceland - Chapter 21 #16 Topic: Cash and cash equivalents
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17. The primary objective of the statement of cash flows is to provide information about a company's: AACSB: Reflective Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 21-01 Explain the usefulness of the statement of cash flows. Spiceland - Chapter 21 #17 Topic: Role of the statement of cash flows 18. How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method? AACSB: Analytic AICPA FN: Measurement Blooms: Analyze Difficulty: 2 Medium Learning Objective: 21-03 Determine cash flows from operating activities by the direct method. Spiceland - Chapter 21 #18 Topic: Cash flows from operating activities-direct method
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19. When a transfer is made between cash and cash equivalents with no gain or loss, how is the transaction treated in the statement of cash flows? AACSB: Reflective Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 21-02 Define cash equivalents. Spiceland - Chapter 21 #19 Topic: Cash and cash equivalents 20. Creditors and investors would generally find the statement of cash flows least useful for assessing the: A. Ability to generate future cash flows. B. Ability to pay dividends. C. Financial position at a point in time. D. Quality of earnings. AACSB: Reflective Thinking AICPA FN: Risk analysis Blooms: Evaluate Difficulty: 2 Medium Learning Objective: 21-01 Explain the usefulness of the statement of cash flows. Spiceland - Chapter 21 #20 Topic: Role of the statement of cash flows
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