CHAPTER 5

Question 1

_______________ help transfer data from the unadjusted trial balance to the financial statement. This multi-column document provides an efficient way to summarize the data for financial statements.
-simplifies the adjusting and closing process. It can also reveal errors

Answer 1

Worksheet

Question 2

The ______________ are the means by which the information accumulated and processed in financial accounting is periodically communicated to the users.
-provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.

Answer 2

financial statements

Question 3

is the ability to take effective actions to alter the amounts and timings of cash flows so that it can respond to unexpected needs and opportunities.

Answer 3

Financial flexibility

Question 4

refers to the availability of cash over the longer term to meet financial commitments as they fall due.

Answer 4

Solvency

Question 5

The _________________ provide information about the cash receipts and cash payments of an entity during a period. It is formal statement that classifies cash receipts (inflows) and cash payments (outflows) into operating, investing and financing activities.

Answer 5

statement of cash flows