The Accuracy of the Statement of Cash Flows,regardless of Method

question 36

Multiple Choice

The accuracy of the statement of cash flows,regardless of method used,can be verified by computing the change in the balance of:

• A)cash.
• B)equity.
• C)revenue.
• D)liabilities.

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Definitions:

Current Liabilities

Financial obligations or debts a company must pay within a year or within its normal operating cycle.

Long-term Liabilities

Financial obligations of a business that are due for repayment more than one year in the future, such as bonds or long-term loans.

Current Liabilities

Financial obligations that a company is expected to pay within one year.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.