The Statement of Cash Flows Will NOT Report

question 5

Multiple Choice

The statement of cash flows will NOT report:

• A) the number of checks not written at the end of the period.
• B) how cash was used in the current period.
• C) changes in the cash balance for the current period.
• D) the sources of cash in the current period.

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Definitions:

Qualified Endorsement

A clause on a negotiable instrument which limits the liability of the endorser or specifies a particular payee.

Without Recourse

A financial agreement where the seller is not liable to the purchaser for any failure of the assets or obligations sold.

Materially Altered

A change in a document or agreement that significantly affects its terms or conditions.

Holder In Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus is protected against certain defenses and claims that could be raised against the original payee.