All Classifications on the Balance Sheet Have a General Relationship

question 32

Multiple Choice

All classifications on the Balance Sheet have a general relationship with sections identified on the Statement of Cash Flows.Indicate which relationships are correctly identified in the table below.
$$\begin{array} { | c | c | c | } \hline \# & \begin{array} { c } \text { Classification on the Balance } \\\text { Sheet }\end{array} & \begin{array} { c } \text { Section on Statement of Cash } \\\text { Flows }\end{array} \\\hline \text { I } & \text { Bonds Payable } & \text { Financing } \\\hline \text { II } & \text { Equipment } & \text { Operating } \\\hline \text { III } & \text { Common Stock } & \text { Financing } \\\hline \text { IV } & \text { Accounts Payable } & \text { Operating } \\\hline \text { V } & \text { Accounts Receivable } & \text { Operating } \\\hline\end{array}$$

• A)IV,V.
• B)I,II,III.
• C)I,III,IV,V.
• D)All five are correct.

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Definitions:

Dispute Settlement Understanding

A core WTO agreement that outlines how countries can resolve trade disputes under its framework.

WTO

Short for World Trade Organization, an international body aimed at promoting and facilitating free trade by reducing tariffs and other trade barriers.

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to regulate trade.

Normal Trade Relations

A GATT principle of trade law which requires that WTO member states treat like goods coming from other member states on an equal basis.