ACC 561 Final Exam

The statement of cash flows is used for _____.

A. showing the relationship of net income to changes in current assets

B. determining a company's acceptable level of debt financing

C. revealing commitments that may restrict future courses of action

D. evaluating the creditworthiness of the organization

Nonoperating items on the income statement _____.

A. appear only on corporate income statements

B. appear on the income statement immediately after gross profit

C. are revenues and expenses arising from adjusting entries

D. reflect the effects of financial management decisions

The difference between a single-step and multiple-step income statement is that a single-step income statement _____.

A. groups all revenues together and all expenses together, whereas a...