SU 1: Ethics And Basic F/S

Question 0

Investing activities

Answer 0

Investment securities and noncurrent assets- effects of transactions involving long-lived assets

Question 1

Operating activities

Answer 1

Income statement- effects of transactions involved in the determination of net income

Question 2

Financing activities

Answer 2

Noncurrent liabilities and equity- effects of transactions involving liabilities and owners’ equity

Question 3

Direct method

Answer 3

Lists the separate categories of gross cash receipts and disbursements and reports net cash flow as the difference between them

Question 4

Indirect method

Answer 4

Begins with net income and removes items that do not affect operating cash flow

Question 5

Statement of Affairs

Answer 5

Prepared for a company in the process of liquidation

Question 6

Current Operating Performance Concept

Answer 6

Emphasizes the ordinary, normal, recurring operations of the entity during the current period