1st Term - Financial English

The cash flow statement of a company should allow the user to understand why earnings and cash generated are not the same.

• True

• False

The cash flows from operating activities are a measure of the cash generated by the company's main activities.

• True

• False

The depreciation expense for the year is a non-cash expense and will always be a reconciliation item in the statement of cash flows.

• True

• False

The nominal value of issued shares would always be shown as a cash inflow from financing activities.

• True

• False

A company that has low liquidity is one that has enough cash and other liquid assets available to pay any obligation as it comes due.

• True

• False

To improve liquidity in a company, it is useful to reduce the time it takes to pay suppliers and thus reduce the amount owed to them.

• True

• False

According to the extract from the income statement of Smart Sports Ltd for the year ended December 31, 2018, what was the operating profit?

• 62,555

• 45,320

• 78,900

• 51,210

According to the extract from the income statement of Smart Sports Ltd for the year ended December 31, 2018, what was the profit for the year?

• 61,455

• 45,320

• 72,890

• 58,100

According to the financial position table of Smart Sports Ltd as of December 31, what was the value of property, plant, and equipment at cost in 2018?

• 154,700

• 214,800

• 61,455

• 62,555

In January 2018, Raja invested £30,000 in Smart Sports Ltd by buying 20,000 shares. In which cities did Raja open stores that same month?

• Mumbai and Delhi

• London and Paris

• Madrid and Barcelona

• Rome and Milan