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Quiz for purpose and elements of cash flow statement

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kandiewhitehead
Created by kandiewhitehead about 5 years ago
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  • statement of cash flow - QUIZ

    Question 1 of 10

    1

    Which of the following options is not a component of a statement of cash flow?

    Select one of the following:

    • financing

    • investing

    • auditing

    Explanation

    Question 2 of 10

    1

    Operating activities for a statement of cash flow include other activities that are not investing or financing activities. Taxes paid/received are classified as operating activities.

    Select one of the following:

    • True
    • False

    Explanation

    Question 3 of 10

    1

    Which of the following statements best describe the main purpose of a statement of cash flow?

    Select one of the following:

    • The main purpose is to provide information about a companies gross receipts/payments for a specified time.

    • The main purpose is to understand the trends of a companies performance.

    Explanation

    Question 4 of 10

    1

    An element of reporting cash flow from operating activities is the direct method. Which of the following is not classified by the direct method?

    Select one or more of the following:

    • Cash received

    • Taxes paid

    • Interest paid

    • undistributed profits

    Explanation

    Question 5 of 10

    1

    Cash flows should be reported as net.

    Select one of the following:

    • True
    • False

    Explanation

    Question 6 of 10

    1

    An element of a cash flow statement is financing activities. Which best describes financing activities?

    Select one or more of the following:

    • Activities that cause changes to equity.

    • Activities that cause changes to assets.

    Explanation

    Question 7 of 10

    1

    Investing activities within a cash flow statement are activities that relate to long-term assets and other investments, not included in cash equivalents.

    Select one of the following:

    • True
    • False

    Explanation

    Question 8 of 10

    1

    Interest and Dividends can be classified as either of the 3 components (operating, financing or investing) as long as they are consistently treated from period to period.

    Select one of the following:

    • True
    • False

    Explanation

    Question 9 of 10

    1

    With a statement of cash flow, which of the following needs to be considered?

    Select one or more of the following:

    • non-cash investing transactions are not to be disclosed

    • foreign exchange transactions to be ignored

    • no disclosure required for acquisition and disposal of subsidiaries

    Explanation

    Question 10 of 10

    1

    Non-cash items such as depreciation, provisions, deferred taxes are classified as the indirect method of reporting cash flows from operating activities.

    Select one of the following:

    • True
    • False

    Explanation