Man Acc Cash Flow Quiz

What is the primary purpose of the Statement of Cash Flows?

• To show a company's assets, liabilities, and equity at a specific point in time.

• To detail the changes in owners' equity over a period.

• To summarize a company's cash inflows and outflows, explaining the change in its cash balance.

• To report a company's revenues, expenses, gains, and losses over a period.

Which of the following is considered a cash equivalent?

• Accounts receivable

• Treasury bills

• Office supplies

• Land

Which type of activity involves cash inflows and outflows related to the acquisition or disposal of non-current assets?

• Financing Activities

• Investing activities

• Operating Activities

• Non-cash Activities

Choose which part of cash flow statement would be affected: Depreciation Expense

• Operating activities

• 1. Investing activities

• Financing activities

• Supplemental

Choose which part of cash flow statement would be affected: Proceeds from the sale of equipment used in the business

• Operating activities

• Investing activities

• Financing activities

• 1. Supplemental activities

Choose which part of the cash flow statement would be affected: Declaration and payment of dividends on company's stock.

• Operating activities

• Investing activities

• Financing activities

• Supplemental activites

Choose which part of the cash flow statement would be affected: Gain on the Sale of Automobile formerly used in the business.

• Operating activities

• Investing activities

• Financing activities

• Supplemental

Issuing common stock is classified under which section of the Statement of Cash Flows?

• 1. Financing Activities

• Non-cash activities

• Investing activities

• Operating activities

1. Which of the following is added to net income under the indirect method?

• Increase in inventory

• Depreciation expense

• Decrease in accounts payable

• Loss on sale of investments

If Accounts Receivable increased by ₱10,000, how is this reflected in the indirect method?

• Add ₱10,000 to net income

• Subtract ₱10,000 from net income

• Add ₱10,000 to investing activities

• Ignore; it doesn’t affect cash