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WorksheetsStatement of Cash Flows
Total questions: 15
Worksheet time: 9mins
Name
Class
Date
1.
Cash Flow Statement is based upon
a)
Cash basis of accounting
b)
Accrual basis of accounting
c)
Credit basis of accounting
d)
None of the above
2.
Which of the following statements are false?
A) Cash Flow Statement is helpful in the formation of policies.
B) Cash Flow Statement is useful for external analysis
C) Cash Flow Statement is helpful in estimating future cash flow
A) Cash Flow Statement is helpful in the formation of policies.
B) Cash Flow Statement is useful for external analysis
C) Cash Flow Statement is helpful in estimating future cash flow
a)
Both A and B
b)
Both A and C
c)
Both B and C
d)
None of the above
3.
Cash from operating activities consist of ____
a)
Operational Net Profit
b)
Decrease in CA
c)
Increase in CL
d)
All
4.
Purchase of goodwill will appear in ____ activity?
a)
Operating
b)
Investing
c)
Both
d)
None
5.
Cash deposited into bank will result in ____ of cash
a)
Inflow
b)
Outflow
c)
No flow
d)
All
6.
Payment of rent relates to _____ activity
a)
Operating
b)
Financing
c)
Investing
d)
All
7.
Rent received by a financing company is classified under _____ activity.
a)
Financing
b)
Investing
c)
Operating
d)
None
8.
Dividend received by the financing company is classified under ______ activity.
a)
Operating
b)
Financing
c)
Investing
d)
None
9.
Which of the following is an example of a cash out-flow for a business?
a)
payments to creditors
b)
sale of goods
c)
payment from debtors
d)
receiving a loan from the bank
10.
If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?
a)
purchase more fixed assets
b)
repay a bank loan
c)
pay suppliers immediately
d)
delay paying suppliers
11.
Issue of share capital is _____ activity
a)
Operating activity
b)
Financing activity
c)
Investing activity
d)
Cash Equivaleants
12.
The following items would be classified as operating activities on the statement of cash flows
a)
(a) Payment for inventory, payments for salaries, cash received from sale of goods
b)
(a) Payments on loan, payments for taxes, payments for rent
c)
(a) Acquisitions of equipment, payment of dividends , revenue
d)
(a) Proceeds from borrowing ,payments of dividends, purchases of supplies
13.
The following items would be classified as investing activities on the statement of cash flows
a)
(a) Sale of goods , receipt of dividends, repurchase of firms own stock
b)
(a) Proceeds from borrowing, payment of dividends, receipt of dividends
c)
(a) Sale of property, purchase of equity securities, loan to others
d)
(a) Proceeds from borrowing, payment of dividends, receipt of dividends
14.
The following items would be classified as financing activities on the statement of cash flows
a)
(a) Payments for inventory, payments to lenders, payments for taxes
b)
(a) Sale of goods, repayment of debt, loans to others
c)
(a) Proceeds from borrowing, payment of dividends , repayment of debt
d)
(a) Loans to others, returns from loans to others, acquisition of land
15.
Which item may be of concern when analyzing cash flow from operating activities?
a)
Repayment of debt
b)
payment of dividends
c)
increasing inventories
d)
(a) decreasing accounts receivable
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