The statement of cash flows should help investors and creditors assess each of the following except the

• entity's ability to generate future income.

• entity's ability to pay dividends.

• reasons for the difference between net income and net cash provided by operating activities.

• cash investing and financing transactions during the period.

The statement of cash flows

• must be prepared on a daily basis.

• summarizes the operating, financing, and investing activities of an entity.

• is another name for the income statement.

• is a special section of the income statement.

Which one of the following items is not generally used in preparing a statement of cash flows?

• Adjusted trial balance

• Comparative balance sheets

• Current income statement

• Additional information

The primary purpose of the statement of cash flows is to

• provide information about the investing and financing activities during a period.

• prove that revenues exceed expenses if there is a net income.

• provide information about the cash receipts and cash payments during a period.

• facilitate banking relationships.

If a company reports a net loss, it

• may still have a net increase in cash.

• will not be able to pay cash dividends.

• will not be able to get a loan.

• will not be able to make capital expenditures.

In addition to the three basic financial statements, which of the following is also a required financial statement?

• the "Cash Budget"

• the Statement of Cash Flows

• the Statement of Cash Inflows and Outflows

• the "Cash Reconciliation"

The statement of cash flows will not report the

• amount of checks outstanding at the end of the period.

• sources of cash in the current period.

• uses of cash in the current period.

• change in the cash balance for the current period.

The statement of cash flows reports each of the following except

• cash receipts from operating activities.

• cash payments from investing activities.

• the net change in cash.

• cash sales.

Each of the following are particularly interested in the statement of cash flows except

• creditors.

• employees.

• shareholders.

• government agencies.

The acquisition of land by issuing common stock is

• a noncash transaction which is not reported in the body of a statement of cash flows.

• a cash transaction and would be reported in the body of a statement of cash flows.

• a noncash transaction and would be reported in the body of a statement of cash flows.

• only reported if the statement of cash flows is prepared using the direct method.