Which Statement About "Cash and Cash Equivalents" Is Correct

question 50

Multiple Choice

Which statement about "cash and cash equivalents" is correct?

• A)Exchanges of "cash and cash equivalents" for items that are not "cash and cash equivalents" result in cash flows for the cash flow statement.
• B)Changes in the composition of "cash and cash equivalents" is considered a cash flow for purposes of the cash flow statement.
• C)Changes in the composition of "cash and cash equivalents" is considered an operating activity on the cash flow statement.
• D)Cash equivalents include investment in long-term bonds.

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Definitions:

Task Behaviors

Actions focused on the logistics of job performance, including planning, organizing, and goal-setting.

Directing Behaviors

Actions taken by leaders to guide, command, or influence the actions and work of others.

Schedule B

A form attached to the IRS Form 1040 that is used to report interest and dividend income over certain amounts.

Forms 1040A

A simplified version of the IRS form 1040 used for filing individual income taxes, now discontinued and replaced by the redesigned Form 1040.