In Preparing a Company's Statement of Cash Flows for the Most

question 84

Multiple Choice

In preparing a company's statement of cash flows for the most recent year,Ransom Corp.reported the following information: Net cash flows from financing activities for the year were:

• A)$230,000 of net cash used.
• B)$230,000 of net cash provided.
• C)$108,000 of net cash used.
• D)$138,000 of net cash used.
• E)$138,000 of net cash provided.

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Definitions:

Cash Account

An account that records all transactions involving cash inflows and outflows.

Petty Cash Fund

A minor sum of money maintained in reserve to cover minor, immediate costs.

Cash Over and Short

An account that records discrepancies between actual cash received and the expected amount, reflecting errors or theft.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for miscellaneous, small expenses.