Liabilities that are expected to be satisfied within one year of the balance sheet date are
Current Liabilities
Provides a snapshot of a company’s financial position at a point in time
Balance Sheet
Which of the following are true of Retained Earnings? (select all that apply)
- It is increased by the declaration of dividends
- It is increased by the net income of the business
It measures the cumulative earnings less cumulative dividend distributions
- It represents the cumulative earnings that have been reinvested in the business.
- It is increased by the net income of the business
It measures the cumulative earnings less cumulative dividend distributions
- It represents the cumulative earnings that have been reinvested in the business.
Current assets on the balance sheet include (select all that apply)
- accounts receivable
- land held as an investment
- inventory
- accounts payable
- cash and cash equivalents
Current Assets = assets expected to be converted to cash or used up within one year or the company’s operating cycle.
- accounts receivable
- inventory
- cash and cash equivalents
Must be presented in addition to an income statement and a balance sheet because cash flows and accrual earnings can differ dramatically.
A Statement of Cash Flows
Goodwill is a noncurrent _________ asset.
Goodwill is a noncurrent Intangible asset
Cash on the Statement of Cash Flows is broken down into which of the following categories?
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Financing activities include
- the purchasing of equipment
- the payment of dividends
- the issuance of common stock
- the purchase of inventory
The payment of dividends & the issuance of common stock
Which of the following are true regarding a statement of cash flows? (Select all that apply)
- Firms must present a statement of cash flows in addition to an income statement and a balance sheet
- Equity analysts need to understand a firm’s cash flows in order to assess its liquidity and creditworthiness
- The cash flow statement explains the causes for year-to-year changes in cash and cash equivalents
- A firm’s cash flows and accrual earnings rarely differ.
- Firms must present a statement of cash flows in addition to an income statement and a balance sheet
- The cash flow statement explains the causes for year-to-year changes in cash and cash equivalents
