Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?
A) This statement must classify cash flows into three categories: operating, investing, and financing activities.
B) Cash equivalents must be combined with cash in preparing this statement.
C) Working capital may be used as a substitute for cash in preparing this statement.
D) The operating activities section can be prepared using either the direct method or the indirect method.
C
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Ian's records show a cash balance of $2,000 while the bank statement shows a balance of $1,800. The difference is most likely explained by
A) unrecorded interest earned on the account. B) deposits made after the statement period. C) checks not cleared during the statement period. D) a statement period less than one month.
The CFO's function in a company focuses on ________
A) improving distributor relationships B) acquiring financial resources C) handling accounting issues D) creating financial statements