Cash Flow Statements

Which of the following is not an activity relating to cash flows?

• operating

• selling

• investing

• financing

Which of the following statements are incorrect?

• Cash flows are inflows and outflows of cash and cash equivalents.

• A Statement of Cash Flows shows flows from operating, investing and financing activities during a

  period.

• Owners’ drawings or the payment of dividends is an operating outflow.

• The receipt of a loan repayment is an investing cash inflow.

Which of the following statements is correct?

• The insurance expense for the month will be $1500.

• Service fees and advertising are operating flows.

• The motor vehicle purchase is an operating flow.

• Drawings is an operating flow.

From the following information, calculate the amount of 'net cash from operating activities.'

Purchase of furniture $2000, Payment of bank charges $12, contribution of capital $80 000, service fees revenue $10 650, payment of rent $800, Drawings $4 200

• $83 638

• $9 850

• -$1 388

• $2 538

Which of the following IS NOT an example of an investing activity?

• capital contributions

• purchase of land

• drawings

• repayment of mortgage

Which of the following is one of the criteria for something to go in the Cash Flow Statement?

• transaction must involve an internal party

• can include credit transactions

• transaction must involve an external party

• Will be a revenue or an expense

From the following information, calculate the amount of 'net cash from investing activities.'

purchase of furniture $2 500, purchase of shares $1 000, payment of wages $5 000, sale of inventories $7 500, sale of motor vehicle $3 000

• $2 000

• $500

• -$500

• $2 500

From the following information, calculate the amount of 'net cash from financing activities.'

owners drawings $ 5 000, sale of furniture $ 2 000, owner's contributions/capital $10 000, sale of shares $5 000, repayment of mortgage $4 000, proceeds from loan $6 000

• $14 000

• $12 000

• $7 000

• $5 000

From the following information, calculate the amount of 'net cash from investing activities.'

Payment of other expenses $5 000, payment for equipment $10 000, selling of land $200 000, payment of furniture $6 000 capital contributions $2 000, repayment of borrowings $8 000, selling of shares $ 6 000

• $179 000

• -$6 000

• $10 000

• $190 000

What is it called when there are more inflows than outflows?