Investing transactions that do not directly and immediately affect cash are:

A. reported separately in the retained earnings statement.
B. reported separately in the cash flow statement.
C. included on a supplemental schedule to the cash flow statement.
D. included in the cash flow statement.


Answer: C

Business

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Discuss the rethinking taking place regarding the time frame used in American business performance systems

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Which of the following is a true statement?

a. Under the articulated concept, accounting elements are defined using the revenue-expense approach rather than the asset-liability approach. b. The articulated approach severs the mathematical relationships between the balance sheet and income statement. c. Under the articulated approach, contributed capital, retained earnings, and unrealized capital adjustments are subclassifications of owners’ equity. d. Recent SFASs have advocated the non-articulated approach to financial statements.

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According to the human resources school of thought, labor unions are:

A. necessary to correct market imperfections. B. a sign of unhealthy HR practices and problematic because they promote adversarial management-labor relationships. C. irrelevant in that they have little effect on the competitiveness of the labor market and are ineffective in improving HR practices. D. monopolies that restrict market competition.

Business