cashflow statement

Which of the cash flow activities does depreciation expense falls?

• operating activity

• investing activity

• financing activity

Which of the cash flow activities does proceeds from the sale of equipment used in the business falls?

• Operating Activity

• Investing Activity

• Financing Activity

Which of the cash flow activities does cash withdrawals of the owner falls?

• Operating Activity

• Investing Activity

• Financing Activity

Which of the cash flow activities does payment for suppliers falls?

• Operating Activity

• Investing Activity

• Financing Activity

The purchase of a new delivery truck to be used in the business is classified as:

• Operating activity

• Investing Activity

• Financing Activity

A cash flow statement shows an overview of money flowing in and out of a company.

• TRUE

• FALSE

In an indirect cash flow statement, depreciation is deducted from net income because it is a non-cash expense.

• TRUE

• FALSE

The financing activities section of a cash flow statement includes payment for the face value of a bank loan.

• TRUE

• FALSE

In a cash flow statement, the proceeds receives from a sale of non-current assets is added to the net income from operation activities.

• TRUE

• FALSE

Indirect method of cash flow statement is usually used by the company that implements accrual method.

• TRUE

• FALSE