Question 1

Which of the following is an operating activity?

Accepted Answer

A)   net profit for the year
B)   a computer purchase
C)   long-term borrowings
D)   short-term borrowingsE) A) and B)
F) All of the above

Question 2

Which of the following is considered a cash outflow?

Accepted Answer

A)   a decrease in prepaid expenses
B)   an increase in long-term debt
C)   an increase in accounts payable
D)   an increase in inventoryE) All of the above
F) A) and D)

Question 3

Match the words with the term.
-income statement

Accepted Answer

A)   cash inflow
B)   investing activities
C)   gross profit
D)   cash outflow
E)   beginning balanceF) B) and E)
G) B) and D)

Question 4

The section called "operating activities" in the statement of cash flows normally shows a cash outflow.

Accepted Answer

A) True 
 B)False

Question 5

______________________ activities such as share capital appearing on the statement of cash flows are usually cash inflows.

Accepted Answer

The answer of ______________________ activities such as share capital appearing...

Question 6

When looking at all the changes in the statements of financial position between two years the sources must always match the uses of cash.

Accepted Answer

A) True 
 B)False

Question 7

Both depreciation and adjustments in non-cash working capital accounts are presented in the statement of cash flows under the section "operating activities".

Accepted Answer

A) True 
 B)False

Question 8

-Cash from operating activities is _________________________.

Accepted Answer

The answer of 
-Cash from operating activities is _________________________....

Question 9

-Net change in operating activities is _________________________.

Accepted Answer

The answer of 
-Net change in operating activities is _________________________....

Question 10

What adjustments are made to calculate cash flow from operating activities?

Accepted Answer

A)   Depreciation is deducted from net profit for the year.
B)   Income tax expense is added back to net profit for the year.
C)   Depreciation is added back to net profit for the year.
D)   Dividends are deducted from retained earnings.E) A) and D)
F) All of the above

Question 11

-According to the above information, which of the following is a cash outflow?

Accepted Answer

A)   trade receivables
B)   long-term debt
C)   prepaid expenses
D)   short-term loanE) B) and D)
F) A) and B)

Question 12

-The ending cash balance is _________________________ .

Accepted Answer

The answer of 
-The ending cash balance is _________________________ ....

Question 13

What is the source of the cash at the beginning of the year on the statement of cash flows?

Accepted Answer

A)   the previous year's statement of financial position
B)   the previous year's statement of changes in equity
C)   the current year's statement of financial position
D)   the current year's statement of changes in equityE) None of the above
F) B) and D)

Question 14

-Ending cash bank balance is _________________________.

Accepted Answer

The answer of 
-Ending cash bank balance is _________________________....

Question 15

Match the words with the term.
-increase in liability accounts

Accepted Answer

A)   cash outflow
B)   common shares
C)   cash inflow
D)   dividends
E)   trade receivablesF) B) and D)
G) C) and D)

Question 16

Match the words with the term.
-profit for the year

Accepted Answer

A)   cash outflow
B)   cash inflow
C)   inventories
D)   land
E)   long-term borrowingsF) All of the above
G) B) and D)

Question 17

Match the words with the term.
-inventories go from $20,000 to $30,000

Accepted Answer

A)   cash inflow
B)   investing activities
C)   gross profit
D)   cash outflow
E)   beginning balanceF) None of the above
G) A) and E)

Question 18

What does cash from investing activities include?

Accepted Answer

A)   Cash from/to all short-term debt items.
B)   Cash from/to all items from the statement of changes in equity.
C)   Cash from/to all non-cash working capital items.
D)   Cash from/to all capital assets items.E) A) and D)
F) B) and C)

Question 19

An increase in a credit card account from one period to the next is considered a cash inflow.

Accepted Answer

A) True 
 B)False

Question 20

The portion of the statement of cash flows that shows the cash outflow from internal sources is referred to as financing activities.

Accepted Answer

A) True 
 B)False

Exam 3: Statement of Cash Flows

The section called "operating activities" in the statement of cash flows normally shows a cash outflow.

Correct AnswerverifiedShow Answer

-The ending cash balance is _________________________ .

Correct AnswerverifiedShow Answer

What is the source of the cash at the beginning of the year on the statement of cash flows?

Correct AnswerverifiedShow Answer

-Net change in operating activities is _________________________.

Correct AnswerverifiedShow Answer

Which of the following is considered a cash outflow?

Correct AnswerverifiedShow Answer

Which of the following is an operating activity?

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______________________ activities such as share capital appearing on the statement of cash flows are usually cash inflows.

Correct AnswerverifiedShow Answer

Match the words with the term. -income statement

Correct AnswerverifiedShow Answer

Match the words with the term. -profit for the year

Correct AnswerverifiedShow Answer

-According to the above information, which of the following is a cash outflow?

Correct AnswerverifiedShow Answer

Match the words with the term. -inventories go from $20,000 to $30,000

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When looking at all the changes in the statements of financial position between two years the sources must always match the uses of cash.

Correct AnswerverifiedShow Answer

What does cash from investing activities include?

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What adjustments are made to calculate cash flow from operating activities?

Correct AnswerverifiedShow Answer

-Cash from operating activities is _________________________.

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-Ending cash bank balance is _________________________.

Correct AnswerverifiedShow Answer

The portion of the statement of cash flows that shows the cash outflow from internal sources is referred to as financing activities.

Correct AnswerverifiedShow Answer

Match the words with the term. -increase in liability accounts

Correct AnswerverifiedShow Answer

An increase in a credit card account from one period to the next is considered a cash inflow.

Correct AnswerverifiedShow Answer

Both depreciation and adjustments in non-cash working capital accounts are presented in the statement of cash flows under the section "operating activities".

Correct AnswerverifiedShow Answer

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