Of the three types of business activities reported on a statement of cash flows, investing activities are the most important when evaluating a business.

Payment of dividends is reported on the statement of cash flows as a(an):

A.
Operating activity

B.
Financing activity

C.
Investing activity
Answer
Financing activity

Of the three types of business activities reported on a statement of cash flows, investing activities are the most important when evaluating a business.

A.
True

B.
False
Answer
False

Purchase of land with cash is reported on the statement of cash flows as a(an):

A.
Operating activity

B.
Financing activity

C.
Investing activity
Answer
Investing activity

The statement of cash flows is designed to fulfill all the following purposes EXCEPT to:

A.
Evaluate management decisions

B.
Assess the collectability of accounts receivable

C.
Help predict future cash flows

D.
Show the relationship of net income to changes in the company's cash
Answer
Assess the collectability of accounts receivable

The statement of cash flows will NOT report:

A.
How cash was used in the current period

B.
The sources of cash in the current period

C.
Changes in the cash balance for the current period

D.
The number of checks not written at the end of the period

Answer
The number of checks not written at the end of the period