In Preparing a Statement of Cash Flows

question 29

Multiple Choice

In preparing a statement of cash flows,

• A)an increase in the Common Shares account during a period would be classified as an investing activity.
• B)the issue of debt should be reported separately from the retirement of debt.
• C)the net movement of loans and repayments are reported as a financing activity.
• D)the issue of shares to acquire land are reported as financing and investing, respectively.

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Definitions:

Internal Control

Procedures and processes implemented by a company to safeguard its assets, ensure financial reporting accuracy, and promote operational efficiency.

Assets

Economic resources controlled or owned by a person or company, expected to provide future benefits.

Misappropriation

The intentional, illegal use of another's funds or property for one's personal use.

Dishonest Employees

Workers who engage in fraudulent or unethical behavior, potentially harming their employer financially or reputationally.