Cash Flow Statement

How Are the Columns in the Cash Journal Determined?

• Random Selections

• Regular or Frequent Occurring Items

• Irregular and Infrequent Items

• The Accounting Equation

Which Item is NOT Subject to GST

• Wages

• Credit Fees

• Paint

• Computer

What is a Cash Surplus?

• GST received is greater than GST paid

• Credit fees are greater than credit purchases

• Cash received is less than cash paid

• Cash received is greater than cash paid

What are Investing Activities?

• GST received, loan repayments and wages

• Cash flows that result from changes in the firms financial structure

• Cash flows that result from the purchase and sale of NCA

• Cash flows that result from day to day trading activities

Which Qualitative Characteristic Do Graphs Enhance?

• Relevance

• Accrual Basis

• Understandibility

• Entity Assumption

Four Types of Financing Activities

• Loan received/ repayment, drawings and capital contribution

• Sale/ purchase of NCA, drawings and capital contribution

• Loan received/ repayment, and sale/ purchase of NCA

• Drawings, capital contribution, credit/ cash fees

Cash Deficit vs Bank Overdraft

• Cash deficit is a negative bank balance whereas bank overdraft is where cash payments exceed cash receipts

• Cash deficit is a decrease due to cash payments exceeding cash receipts whereas bank overdraft is a negative bank balance over the period

• Cash deficit is a decrease due to cash payments exceeding cash receipts whereas bank overdraft is a positive bank balance over the period

• Cash deficit is an increase due to cash payments exceeding cash receipts whereas bank overdraft is an increase bank balance over the period

Which Figure Should Be Used as Next Month's Bank?

• $14,000

• $8,000

• $6,000

• $12,000

What Was Last Month's Final Bank Balance?

• $14,000

• Not Enough Information

• $8,000

• $6,000

• 3 300

• 3 700

• 3 500

• 6 500