CFS QUIZ - BUCSIT, CANAVAN, DEL FIERRO, DOROSON, TIMBANG

What does “Change in Cash Balance” measure?

• Increase or decrease in cash from the beginning to end of the period

• Total company assets

• Quality of earnings

• Revenue minus expenses

How is "Quality of Earnings" measured?

• By dividing Cash Flow from Operations by Net Income

• By calculating End Cash Balance minus Beginning Cash Bal

• By dividing total assets by liabilities

•  By adding cash and liabilities

What is the primary purpose of a Cash Flow Statement (CFS)?

•  To show profit margins

•  To show cash inflows and outflows

•  To measure stock performance

•  To calculate debt ratios

Which of the following is NOT a section in the Cash Flow Statement?

•  Operating Activities

• Investing Activities

• Financing Activities

•  Revenue Activities

Which section of the Cash Flow Statement includes cash from sales and payments to suppliers?

• Operating Activities

•  Investing Activities

• Financing Activities

• Capital Expenditures

What does the "Capital Acquisitions Ratio" measure?

• Cash generated from operating activities only

• The amount spent on dividends

•  Cash Flow from Operations relative to CAPEX

•  Debt-to-equity ratio

Which section would issuing new stock fall under in the Cash Flow Statement?

• Operating Activities

• Investing Activities

• Investing Activities

• Revenue Activities

What is the basic format/formula for Cash Flow Statement

• 1. Ending Cash Balance = BEG, Cash Balance+Cash Flow (CF) from Operating Activities+CF from Investing Activities+Cash Flow from Financing Activities

• 1. Cash Flow from Operations/Cash Paid for Capital Expenditures (CAPEX)

• 1. Cash Flow from Operations/Net Income

• 1.  Ending Cash Balance = BEG, Cash Balance+Cash Flow (CF) from Operating Activities+CF from Expenditure Activities+Cash Flow from Accounting Activities

This is any activity that brings cash into the firm

• 1. Use of Cash

• 1. Investment of Cash

• 1. Source of Cash

• 1. Cash Inflow

Which of the following would be reported as cash inflow from financing activities?

• 1. Money received from sales of products

• 1. Interest received on investments

• 1. Proceeds from issuing new shares

• 1. Sale of a long-term asset