Intro to Statement of Cash Flows

Cash Flow Statement is based upon
 

• Cash basis of accounting
• Accrual basis of accounting
• Credit basis of accounting 
• None of the above

Cash from operating activities consist of ____

• Operational Net Profit
• Decrease in CA
• Increase in CL
• All

Purchase of goodwill will appear in ____ activity?

• Operating
• Investing
• Both
• None

Payment of rent relates to _____ activity

• Operating
• Financing
• Investing
• All

Rent received by a financing company is classified under _____ activity.

• Financing
• Investing
• Operating
• None

Dividend received by the financing company is classified under ______ activity.

• Operating
• Financing
• Investing
• None

Which of the following is an example of a cash out-flow for a business?

• payments to creditors
• sale of goods
• payment from debtors
• receiving a loan from the bank

Issue of share capital is _____ activity

• Operating activity
• Financing activity
• Investing activity
• Cash Equivaleants

Dividend paid is part of the .....

• Financing activities

• Operating activities

• Investment activities

• None of the above

Activities that involve the cash effects of making and collecting loans and acquiring and disposing of property, plant, and equipment are classified as:

• noncash activities.

• investing activities.

• operating activities.

• financing activities.