Question 2
The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders‘ equity only. Question 3
The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash. Question 4
The cash debt coverage ratio indicates a company‘ s ability to repay its liabilities from cash generated from operations. Question 5
The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time. Question 6
The statement of cash flows Question 7
Generally, the most important category on the statement of cash flows is cash flows from Question 8
Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on note would be classified on the statement of cash flows. Question 9
Which of the following transactions does not affect cash during a period? Question 10