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cashflow statement

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

Which of the cash flow activities does depreciation expense falls?

a)

operating activity

b)

investing activity

c)

financing activity

2.

Which of the cash flow activities does proceeds from the sale of equipment used in the business falls?

a)

Operating Activity

b)

Investing Activity

c)

Financing Activity

3.

Which of the cash flow activities does cash withdrawals of the owner falls?

a)

Operating Activity

b)

Investing Activity

c)

Financing Activity

4.

Which of the cash flow activities does payment for suppliers falls?

a)

Operating Activity

b)

Investing Activity

c)

Financing Activity

5.

The purchase of a new delivery truck to be used in the business is classified as:

a)

Operating activity

b)

Investing Activity

c)

Financing Activity

6.

A cash flow statement shows an overview of money flowing in and out of a company.

a)

TRUE

b)

FALSE

7.

In an indirect cash flow statement, depreciation is deducted from net income because it is a non-cash expense.

a)

TRUE

b)

FALSE

8.

The financing activities section of a cash flow statement includes payment for the face value of a bank loan.

a)

TRUE

b)

FALSE

9.

In a cash flow statement, the proceeds receives from a sale of non-current assets is added to the net income from operation activities.

a)

TRUE

b)

FALSE

10.

Indirect method of cash flow statement is usually used by the company that implements accrual method.

a)

TRUE

b)

FALSE