Almost All Current Liabilities Affect the Operating Category of the Statement

question 22

Multiple Choice

Almost all current liabilities affect the operating category of the statement of cash flows, but one that does not affect cash provided by operating activities is

• A) accounts payable.
• B) interest payable.
• C) notes payable.
• D) taxes payable.

Acknowledge the concepts of accruals, deferrals, and their roles in adjusting entries.

Appreciate the importance of the principle of materiality in making accounting judgments.

Realize the significance of consistency, comparability, and reliability in financial reporting.

Understand the economic entity assumption and the separation of business and personal transactions.

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Definitions:

No Child Left Behind

A U.S. Act passed in 2001 aimed at closing the achievement gap with accountability, flexibility, and choice, so that no child is left behind in their education.

Federal Funds

Financial resources provided by the federal government to states, localities, and institutions, often for specific projects or purposes.

Exceptionalities

Unique differences or needs in individuals, especially those relating to cognitive, physical, psychological, or educational characteristics.

Cultural Group

A community of people who share common languages, traditions, customs, values, and often geographic locations.