

Understanding Cash Flow Statements
Interactive Video
•
Business
•
10th - 12th Grade
•
Practice Problem
•
Hard
Mia Campbell
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the initial capital used for in the shipping truck company example?
To pay off debts
To buy a truck
To hire employees
To invest in stocks
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the main purpose of a cash flow statement?
To calculate taxes
To reconcile profit with starting and ending cash
To forecast future sales
To determine employee salaries
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is depreciation treated in the cash flow statement?
It is considered a cash expense
It is ignored
It is added back to the operating profit
It is subtracted from the profit
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is depreciation added back to the operating profit?
Because it is a cash expense
Because it is not a cash expense
Because it reduces liabilities
Because it increases revenue
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the cash from operations in the first period?
$60,000
$50,000
$30,000
$40,000
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the ending cash balance for the first period?
$30,000
$40,000
$60,000
$50,000
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the starting cash for the second period?
$60,000
$50,000
$40,000
$30,000
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