Cash Flow Statement Quiz

Which is NOT a major component of the cash flow statement?

• Operating activities

• Investing activities

• Financing activities

• Budgeting activities

Cash receipts from customers are classified under which activity?

• Operating

• Investing

• Financing

• Noncash transactions

Which of the following is a typical cash inflow from investing activities?

• Issuing stock

• Collection of accounts receivable

• Sale of equipment

• Payment of dividends

Dividends paid to shareholders belong to:

• Investing activities

• Operating activities

• Financing activities

• Noncash activities

What method adjusts net income for noncash transactions to calculate CFO?

• Direct method

• Indirect method

• Cash accounting method

• Accrual method

What transaction would NOT appear directly in the cash flow statement?

• Issuing bonds for cash

• Paying dividends

• Exchange of assets without cash

• Buying new equipment

Increases in accounts payable will:

• Decrease operating cash flow

• Increase operating cash flow

• Increase investing cash flow

• Decrease financing cash flow

What’s the final step in preparing the cash flow statement?

• Determine cash flows from financing

• Determine change in cash balance

• Disclose significant noncash transactions

• Calculate cash flows from investing

Which statement best describes free cash flow to the firm (FCFF)?

• Cash flow available only to shareholders

• Cash flow after financing expenses

• Cash flow available to all investors (equity & debt holders)

• Cash flow from investing activities only

Noncash investing and financing activities should be:

• Ignored completely

• Included in cash from investing

• Reported separately as supplementary information

• Included in cash from financing