Chapter 21 Questions
What information does the statement of cash flows help users assess?
The statement of cash flows provides users information about a companys abilities to create positive
future net cash flows, meet its obligat
Chapter 21 Review Exercises
Increase in AR
Increase in deferred rev.
Collections from customers
Cost of goods sold
Chapter 14 Questions
Debt financing has a lower cost of capital than equity financing because it has lower risk which
means there is a lower rate on return.
Interest expense is tax deductible for corporations but dividend payments are
Chapter 13 Homework
E13-1; E13-3; E13-4; E13-6; E13-8; E13-11; E13-15; & E13-18
a: Available For Sale
c: Available For Sale
d: Equity Method
e: Hold To Maturity
Investment in HTM
Chapter 13 Questions
Companies may purchase securities from another company to create more income and/or to
gain competitive position.
Debt security- a creditor relationship with another organization
Equity security- ownership interest