Question 1.1. The basic financial statements do NOT include the: (Points : 2)

income statement tax return. balance sheet statement of cash flows

Question 2.2. The statement of cash flows is integrated with the balance sheet because (Points : 3)

the cash at the beginning of the period plus or minus the cash flows from operating, investing, and financing activities equals the end of period cash reported on the balance sheet the cash at the beginning of the period plus or minus the net income equals the end of period cash reported on the balance sheet the cash at the beginning of the period plus or minus assets and liabilities equals the end of period cash reported on the balance sheet. the cash at the beginning of the period plus or minus the cash flows from operating activities equals the end of period cash reported on the balance sheet.

Question 3.3. Flow, Inc. received cash from fees earned. How does this transaction affect the Statement of Cash Flows? (Points : 2)

Increase cash from Operating Activities Increase cash from Investing Activities Increase cash from Financing Activities No effect on the Statement of Cash Flows

Question 4.4. Financing activities involve obtaining __________ to operate a business. (Points : 2)

Products Customers business incentives funds

Question 5.5. Cash investments made by the stockholders of the business are reported on the statement of cash flows in the (Points : 2)

financing activities section investing activities section operating activities section supplemental statement

Question 6.6. The ratio computed by dividing current assets by current liabilities is the (Points : 2)

current ratio earnings ratio acid-test ratio quick ratio.

Question 7.7. Which of the following is a measure of the liquid position of a corporation? (Points : 2)

Earnings per share Inventory turnover Current ratio Number of times interest charges earned