Which of the Following Is a True Statement

question 2

Multiple Choice

Which of the following is a true statement?

• A)Research is supportive of the contention that cash and funds flow data are informative above and beyond accrual data.
• B)Use of the direct method in the cash flow statement frequently results in non-articulation.
• C)Interest expense and long-term notes payable both appear in the financing section of the cash flow statement.
• D)With SFAS No. 95, the FASB chose to follow the entity model rather than the traditional income statement (proprietary) approach.

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Definitions:

Authorized To Sign Checks

Designation given to individuals who are officially permitted by a business or organization to sign checks on behalf of the entity.

Cash Disbursement Transactions

Financial transactions that involve the outflow of cash to settle obligations or purchase assets.

Petty Cash

A small amount of cash kept on hand for minor, incidental expenses.

Cash Over And Short

An account used to report minor discrepancies between physical cash amounts and accounting records.