1) A contingency is:a.a material event that has an uncertain future.b.a commitment due to

1) A contingency is:

a.a material event that has an uncertain future.

b.a commitment due to

contractual provisions.

c.an event that occurs after year end, but before the financial statements are issued.

d.all of the above (all of the above are examples of contingencies).

2) Activities that involve the cash effects of transactions that enter into the determination of net income are classified as:

a.operating activities.

b.investing activities.

c.financing activities.

d.non-cash activities.

3)The cash flow statement for Schroder Corporation shows the following information:

Net cash provided by operating activities:$100,000

Net cash used by investing activities:$(50,000)

Net cash provided by financing activities:$10,000

Cash balance at the beginning of the period:$30,000 

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