Question Completion Status:

QUESTION $6$

The direct method of preparing the statement of cash flows is usually viewed as user$-$friendly since it requires less accounting knowledge to understand it$.$

True

False

QUESTION $7$

The indirect method reports individual operating cash outflows and cash inflows by activity.

True

False

QUESTION $8$

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:

Operating activities

Financing activities

Investing activities

Schedule of noncash investing or financing activity

None of these as this is not reported on the statement of cash flows

QUESTION $9$

The statement of cash flows is:

The only financial statement that reports the cash balance of a company.

A financial statement that presents information about changes in equity during a period.

A financial statement that reports the cash inflows and outflows for an accounting period and that classifies those cash flows as operating activities, investing activities, or financing activities.

A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.

A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

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