What is the overall purpose to the statement of cash flows, Cost Accounting

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1.  Provide at least three characteristics of a corporation (in your own words).

 

2.  The date on which a cash dividend becomes a binding legal obligation is known as what date?

3.  A corporation has 40,000 shares of $25 par value stock outstanding.  If the corporation issues a 3-for 1  stock  split, the number of shares outstanding after the split will be 

 

4.  Should a corporation be in a position to liquidate, detail the order of payment to debt holders and  equity  holders.  Consider that this corporation has issued common stock, bonds, and preferred stock.

 

5.  When is it appropriate to use the equity method of recording versus the cost method when in receipt of cash dividends from an investment?

 

6.  What is the overall purpose to the Statement of Cash Flows?

 

 

7.  When is it appropriate for a business to use the direct method of calculating cash flows over the indirect method?


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