财务会计英语练习及答案ch.docVIP

CHAPTER 16 STATEMENT OF CASH FLOWS Chapter 16—Statement of Cash Flows TRUE/FALSE 1. The statement of cash flows is not one of the basic financial statements. ANS: F DIF: 1 OBJ: 01 2. Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents. ANS: T DIF: 1 OBJ: 01 3. The statement of cash flows is an optional financial statement. ANS: F DIF: 1 OBJ: 01 4. The statement of cash flows shows the effects on cash of a companys operating, investing, and financing activities. ANS: T DIF: 1 OBJ: 01 5. The statement of cash flows reports a firms major sources of cash receipts and major uses of cash payments for a period. ANS: T DIF: 1 OBJ: 01 6. Cash flows from operating activities, as part of the statement of cash flows, include cash transactions that enter into the determination of net income. ANS: T DIF: 1 OBJ: 01 7. To arrive at cash flows from operations, it is necessary to convert the income statement from an accrual basis to the cash basis of accounting. ANS: T DIF: 2 OBJ: 01 8. Cash flows from investing activities, as part of the statement of cash flows, include receipts from the sale of land. ANS: T DIF: 2 OBJ: 01 9. Cash flows from financing activities, as part of the statement of cash flows, include payments for dividends. ANS: T DIF: 2 OBJ: 01 10. Cash flows from investing activities, as part of the statement of cash flows, include payments for the purchase of treasury stock. ANS: F DIF: 2 OBJ: 01 11. Cash flows from investing activities, as part of the statement of cash flows, include receipts from the issuance of bonds payable. ANS: F DIF: 2 OBJ: 01 12. There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method. ANS: T DIF: 1 OBJ: 01 13. The direct method of preparing the operating activities section of the statement of cash flows reports major clas