Statement of Cash Flows - LB19

The statement of cash flows is .....

• Must be prepared on a daily basis

• Summarizes the operating, financing, and investing activities of an entity

• Is another name for the income statement

• is a special section of the income statement

Which one of the following items is not generally used in preparing a statement of cash flows?

• Adjusted trial balance

• Comparative statements of financial position

• Current income statement

• Additional information

The primary purpose of the statement of cash flows is to ...

• Provide information about the investing and financing activities during a period

• Prove that revenues exceed expenses if there is a net income

• Provide information about the cash receipts and cash payments during a period

• Facilitate banking relationships

Each of the following are particularly interested in the statement of cash flows except ...

• Creditors

• Employees

• Shareholders

• Government Agencies

Lending money and collecting the loans are ...

• Operating activities

• Investing activities

• Financing activities

• Non-cash investing and financing activities

The order of presentation of activities on the statement of cash flows is ...

• Operating, investing, and financing

• Operating, financing, and investing

• Financing, operating, and investing

• Financing, investing, and operating

Significant non-cash transactions would not include ...

• Conversion of bonds into ordinary shares

• Asset acquisition through bond issuance

• Treasury share acquisition

• Exchange of plant assets

Indicate where the transaction of purchasing land for cash would appear, if at all, on the indirect statement of cash flows

• Operating activities section

• Investing activities section

• Financing activities section

• Does not represent a cash flow

In preparing a statement of cash flows, a conversion of bonds into ordinary shares will be reported in ...

• The financing section

• The operating section

• A separate note or supplementary schedule to the financial statements

• The equity section

Which of the following transactions does not affect cash during a period?

• Write-off of an uncollectible account

• Collection of an accounts receivable

• Sale of treasury shares

• Exercise of the call option on bonds payable