Which of the following items about the statement of cash flows is correct?
A)Non-cash expenses such as depreciation are deducted from net income with the indirect method in computing cash flows from operating activities.
B)Cash equivalents are highly liquid investments with maturities at the date of purchase of less than three months.
C)The acquisition of land by issuing bonds payable would not appear on the statement of cash flows.
D)Cash paid for interest would be classified as a financing cash flow.

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid and have maturities at the date of purchase of three months or less.

Which of the Following Items About the Statement of Cash