Seminar 7 Quiz

Other comprehensive incomes are unrealised gains or losses that have effect on the equity, but bypass the income statement.

• True

• False

You can find all the elements in the company's equity in the statement of changes in equity.

• False

• True

Which is an example of a cash flow from an operating activity?

• Receipt of cash from the sale of capital stock

• Payment for the purchase of a car

• None of the options

• Payment of cash to lenders for interest

The statement of cash flows is designed to assist users in assessing in each of the following, except:

• The ability of a company to remain liquid

• The major sources and uses of cash during the period

• The company's profitability

• The reasons why net income is different from net cash flow from operating activities

What are the 6 components that should be present in a cash flow statement?

• Operating, liabilities, financing, cash supplemental & disclosure

• Operating, investing, supplemental disclosure, financing & bankruptcy

• Operating, investing, supplemental disclosure, financing & assets

• Operating, financing, investment, cash reconciliation & supplemental disclosure

What is cash reconciliation?

• The process of matching internal ledger entries to bank statement

• Changes in liability relating to borrowing & equity items

• Cash effects of transactions involving plant assets, intangible assets & investments

• Cash effect of revenues and expenses of the income statement

To find the CRR of a company, we divide its net income by the net cash provided by operating activities.

• True

• False

Which of the following should be included when calculating the net cash flow of operating activities?

• Gains from the sale of assets

• Amortisation expense

• Decrease in tax payable

• Depreciation expense

To derive cashflow from operating activities, companies in Singapore that comply with the FRS-7 start it's calculation from taking net income from the income statement to derive cashflow for operating activities?

• True

• False

Is an increase in inventory, an addition or subtraction from net profit?

• Subtraction

• Addition