Question

Creditors and investors would generally find the statement of cash flows least useful for assessing the Select one: a. Financial position at a point in time. b. Quality of earnings. c. Ability to generate future cash flows. d. Ability to pay dividend. If, at the end of 2017, a company using perpetual inventory erroneously excluded some goods from its ending inventory but recorded the purchase of these goods in its 2017 accounting records, these errors would cause (for 2017) Select one: a. the ending inventory, cost of goods sold, and retained earnings to be understated. b. the ending inventory and retained earnings to be understated. c. no effect on net income, working capital, and retained earnings. d. cost of goods sold and net income to be understated. The correct order of preparing the financial statements is: Select one: a. balance sheet, statement of cash flows, income statement, statement of stockholders' equity b. income statement, statement of stockholders' equity, statement of cash flows, balance sheet c. income statement, statement of stockholders' equity, balance sheet, statement of cash flows d. the order does not matter.

          Creditors and investors would generally find the statement of cash flows least useful for assessing the
Select one:
a. Financial position at a point in time.
b. Quality of earnings.
c. Ability to generate future cash flows.
d. Ability to pay dividend.

If, at the end of 2017, a company using perpetual inventory erroneously excluded some goods from its ending inventory but recorded the purchase of these goods in its 2017 accounting records, these errors would cause (for 2017)
Select one:
a. the ending inventory, cost of goods sold, and retained earnings to be understated.
b. the ending inventory and retained earnings to be understated.
c. no effect on net income, working capital, and retained earnings.
d. cost of goods sold and net income to be understated.

The correct order of preparing the financial statements is:
Select one:
a. balance sheet, statement of cash flows, income statement, statement of stockholders' equity
b. income statement, statement of stockholders' equity, statement of cash flows, balance sheet
c. income statement, statement of stockholders' equity, balance sheet, statement of cash flows
d. the order does not matter.

Creditors and investors would generally find the statement of cash flows least useful for assessing the
Select one:
a. Financial position at a point in time.
b. Quality of earnings.
c. Ability to generate future cash flows.
d. Ability to pay dividend.

If, at the end of 2017, a company using perpetual inventory erroneously excluded some goods from its ending inventory but recorded the purchase of these goods in its 2017 accounting records, these errors would cause (for 2017)
Select one:
a. the ending inventory, cost of goods sold, and retained earnings to be understated.
b. the ending inventory and retained earnings to be understated.
c. no effect on net income, working capital, and retained earnings.
d. cost of goods sold and net income to be understated.

The correct order of preparing the financial statements is:
Select one:
a. balance sheet, statement of cash flows, income statement, statement of stockholders' equity
b. income statement, statement of stockholders' equity, statement of cash flows, balance sheet
c. income statement, statement of stockholders' equity, balance sheet, statement of cash flows
d. the order does not matter.

Added by Patricia P.

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