statement of cash flow - QUIZ

kandiewhitehead
Quiz by kandiewhitehead, updated more than 1 year ago
kandiewhitehead
Created by kandiewhitehead almost 5 years ago
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Description

Quiz for purpose and elements of cash flow statement

Resource summary

Question 1

Question
Which of the following options is not a component of a statement of cash flow?
Answer
  • financing
  • investing
  • auditing

Question 2

Question
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.
Answer
  • True
  • False

Question 3

Question
Which of the following statements best describe the main purpose of a statement of cash flow?
Answer
  • 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.

Question 4

Question
An element of reporting cash flow from operating activities is the direct method. Which of the following is not classified by the direct method?
Answer
  • Cash received
  • Taxes paid
  • Interest paid
  • undistributed profits

Question 5

Question
Cash flows should be reported as net.
Answer
  • True
  • False

Question 6

Question
An element of a cash flow statement is financing activities. Which best describes financing activities?
Answer
  • Activities that cause changes to equity.
  • Activities that cause changes to assets.

Question 7

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

Question 8

Question
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.
Answer
  • True
  • False

Question 9

Question
With a statement of cash flow, which of the following needs to be considered?
Answer
  • non-cash investing transactions are not to be disclosed
  • foreign exchange transactions to be ignored
  • no disclosure required for acquisition and disposal of subsidiaries

Question 10

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