Question: All true or false Cash flow statements help users decide whether a company has enough cash to pay its debts. The purchase of a long-term
All true or false
Cash flow statements help users decide whether a company has enough cash to pay its debts.
The purchase of a long-term asset using a long-term note payable is an example of a noncash investing and financing activity, which should be disclosed in a note or separate schedule.
The cash flow on total assets ratio is not affected by accounting recognition and measurement.
Both the direct and indirect methods yield the identical net cash flow amount provided or used by operating activities.
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