Question

1. Which of the following is the largest number of shares?

a) outstanding shares

b) approved shares

c) authorized shares

d) issued shares

2. The Statement of Income reflects the overall change in cash flows for an accounting period.

a) True

b) False

3. Major differences between the income statement and the cash flow statement include all of the following except for

a) the income statement measures cash position.

b) the income statement captures mainly operating activities.

c) the income statement does not capture many creditor transactions.

d) the income statement is prepared on an accrual basis.

4. Non-cash expenses will reduce the amount of cash a company is able to generate from its operations.

a) True

b) False

Answer 1

1

Answer is Authorized Shares

Authorized share are the maximum shares allowed from a company to the investors. Issued shares are the share which is issued to the share holders . Outstadning shares are the shares which held at custody of public.

2

The statement is False.

The cash flow statement is the reflects overall cahnge in cash flows of an accounting period. income statemnet refers to profitability

3.

The answer is Income statement is measures cash position

Other options are related to the income statement. This except one is related to cash flow statement. The income statement are recorded on the basis of acrrual and didnt include creditors details.

4

False.

A non cash expense will not reflect the cash balance.

For example depreciation is an non cash expenditure and it will not reflect cash balance of the organization.