A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations.

1. True

2. False

Land held for speculation is reported in the long-term investment section of the balance sheet.

1. True

2. False

Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows

1. True

2. False

Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis. 1. True

2. False

Question

Business

Marc Castaneda

23 April, 21:46

A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations.

1. True

2. False

Land held for speculation is reported in the long-term investment section of the balance sheet.

1. True

2. False

Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows

1. True

2. False

Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis. 1. True

2. False

+2

Answers (1)

Know the Answer?

Alejandro Owen · Answer 1

1. True.

2. True.

3. True.

4. True.

Explanation:

1. True: A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations.

2. True: Land held for speculation is reported in the long-term investment section of the balance sheet because they are fixed assets.

3. True: Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

4. True: Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis.