A Dividends receivable - MGMT-027
Which of the following are considered cash equivalents on the statement of cash flows (check all that apply)?
a Treasury bills
~Your answer is correct.
]
Notes receivable due in 6 months
a
Dividends receivable Commercial paper
]
Challenge
The correct answer is shown. One of the key concepts in preparing the statement of cash flows is that the operating activities section may be prepared using either the oirec, or the 1ndirec method.
VYour answer is correct.
Challenge
All transactions (other than interest payments) involving borrowing from creditors or repaying creditors as well as transactions with the company's owners are ___ activities.
~Your answer is correct.
investing
l f l tinancing
)
operating
Challenge
The correct answer is shown. Transactions that involve acquiring or disposing of noncurrent assets are investing activities.
ChaUenge
~Your answer is correct.
The correct answer is shown. The 1ndirecL method of computing operating activities reconciles net income to net cash flow.
ChaUenge
~Your answer is correct.
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