Study4smart Quality review Materials

176.A main purpose of the statement of cash flows is to report all the major cash _____________ and cash . 177. Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are . 178. ____________________ activities include the cash effects of transactions and events that determine net income. 179. ____________________________ activities generally include those transactions and events that affect long-term assets. 180. ____________________________activities include those transactions that affect long-term liabilities and equity. 181 . 1 82.The statement of cash flows is divided into three sections called the__________________________________________________________________ , ___________ , and sections.

.Noncash financing and investing activities are disclosed in the _______

183.Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ____________________ section. 1

84.The cash flow on total assets ratio is computed by dividing ________

1 85.Information to prepare the statement of cash flows usually comes from three sources: (1) _________________________ , (2) ______________________ , and (3) ____________________. 1 1

86.All cash transactions eventually affect noncash _______________ 87.When preparing the operating section of the statement of cash flows using the indirect method, noncash expenses are ___________________________ net income.

188. The reporting of investing and financing activities is __________________________ under the direct and indirect methods of preparing the statement of cash flows. 1 89.The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the ______________________ method.

190.The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the method is used.