Reference no: EM13512373

MULTIPLE CHOICE

1.Which of the following is not a true statement?

a.The cash flow statement superceded the previously required statement of changes in financial position.

b.The cash flow statement is the statement of financial position with funds defined as cash.

c.The statement of financial position is a special case of the more general cash flow statement.

d.Inclusion of a cash flow statement is mandatory.

2.In the statement of changes in financial position, uses of resources are defined as:

a.transaction debits

b.fund increases

c.transaction credits

d.fund decreases

3.In the statement of changes in financial position, sources of resources are defined as:

a.transaction debits

b.fund increases

c.transaction credits

d.fund decreases

4.Which of the following directly preceded the statement of changes in financial position?

a.The statement of cash flows

b.The funds flow statement

c.The sources and uses of funds statement

d.The sources and uses of resources statement

5.Which of the following directly preceded the statement of cash flows?

a.The funds flow statement

b.The sources and uses of funds statement

c.The statement of changes in financial position

d.The sources and uses of resources statement

6.In the sources section of the statement of changes in financial position, transactions are sub-classified into those affecting:

a.The fund balance and other accounts

b.Cash and other accounts

c.Current assets or liabilities and other accounts

d.Liquid assets and other accounts

7.In the uses section of the statement of changes in financial position, transactions are sub-classified into those affecting:

a.The fund balance and other accounts

b.Cash and other accounts

c.Current assets or liabilities and other accounts

d.Liquid assets and other accounts

8.The statement of changes in financial position reported on:

a.Changes in current assets and current liabilities

b.Changes in assets

c.Changes in assets, liabilities, and owners’ equity account balances.

d.Changes in working capital

9.Most firms elected to define funds in the statement of changes in financial position as:

a.Cash

b.Working capital

c.Current assets

d.Owners’ Equity

With SFAS No. 95 defining funds as cash, the FASB has:

a.Moved from a flexibility orientation to a position of rigid uniformity.

b.Moved from a position of rigid uniformity to one of finite uniformity.

c.Moved from a position of rigid uniformity to a flexibility orientation.

d.Moved from a flexibility orientation to a position of finite unity.