In a Statement of Cash Flows, Increases or Decreases in Noncurrent

question 31

Multiple Choice

In a statement of cash flows, increases or decreases in noncurrent assets are most closely associated with

• A)operating activities
• B)investing activities
• C)financing activities.
• D)investing or financing activities

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Definitions:

Intangibles

Assets that lack physical substance but possess value, such as patents, copyrights, trademarks, and goodwill.

Long-term Liabilities

Obligations that a company expects to pay after one year.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest in the company.

Vertical Analysis

An approach to financial statement examination where each component within the principal groups of accounts (assets, liabilities, and equity) on a balance sheet is shown as a ratio of the overall category amount.