All Classifications on the Balance Sheet Have a General Relationship

question 97

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. $$\begin{array} { | c | c | c | } \hline \# & \begin{array} { c } \text { Classification on the } \\\text { Balance Sheet }\end{array} & \begin{array} { c } \text { Section on Statement of } \\\text { Cash Flows }\end{array} \\\hline \text { I } & \text { Bonds Payable } & \text { Financing } \\\hline \text { II } & \text { Equipment } & \text { Operating } \\\hline \text { III } & \text { Common Stock } & \text { Financing } \\\hline \text { N } & \text { Accounts Payable } & \text { Operating } \\\hline \text { V } & \text { Accounts Receivable } & \text { Operating } \\\hline\end{array}$$

• A)IV,V.
• B)I,II,III.
• C)I,III,IV,V.

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Definitions:

401k Plan

A retirement savings plan sponsored by an employer allowing employees to save and invest a portion of their paycheck before taxes are taken out.

Take Home

The net amount of income that an individual actually receives after all deductions, such as taxes and social security contributions.

Taxable Bond Portfolio

A collection of bonds whose interest payments are subject to federal and possibly state income taxes.

Roth Retirement Plan

A type of retirement savings plan allowing taxable withdrawals to be made tax-free, provided certain conditions are met.