Cash Flow Statement Test

Result

Cash Flow Statement Test - 14

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Weekly Quiz Competition

Question 1
1 / -0

Which of the following transactions will increase an asset and also decrease an asset ?

A
Stores purchased on account

B
Stores purchased on cash

C
Payment of promissory note with cash

D
Declaration of a dividend

E
All of the above
Question 2
1 / -0

Which of the following is not a cash outflow for the firm?

A
Depreciation

B
Dividends

C
Interest payments

D
Taxes

Solution

Cash outflow is the amount of cash that a business disburses.
Cash outflow results from expense or investments.
A company may be required to seek additional finance if cash outflow exceeds cash inflow.
Question 3
1 / -0

Cash payments for income taxes are included on the statement of cash flows as ______________.

A
Financing activities

B
Investing activities

C
Operating activities

D
Non-operating activities

Solution

Cash flow from operating activities are primarily derived from the main activities of the enterprises.
Therefore, they generally result from the transactions and other events that enter into the determination of net profit or loss.
Operating activities includes cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities.
Question 4
1 / -0

If operating expenses is $$75\%$$ then operating profit will be __________.

A
$$25\%$$

B
$$100\%$$

C
$$50\%$$

D
$$175\%$$
Question 5
1 / -0

Which of the following statement are false?
a. Old furniture written off doesn't affect cash flow.
b. Cash flow statement is a substitute for cash account.
c. Appropriation of retained earnings is not shown in cash flow statement.
d. Net cash flow during a period can never be negative.

A
A, B and C

B
B, C and D

C
C, D and A

D
None of the above

Solution

Statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, financing activities.
Question 6
1 / -0

In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from _____________.

A
Operating activities

B
Financing activities

C
Investing activities

D
None of the above

Solution

Cash flows from interest and dividends received and paid should each be disclosed separately. Cash flows arising from interest paid and interest and dividends received in case of a financial enterprise should be classified as cash flows arising from operating activities. In the case of other enterprises, cash flows arising from interest paid should be classified as cash flows from financing activities while interest and dividends received should be classified as cash flows from investing activities.
Question 7
1 / -0

Which of the following is not a cash inflow?

A
Decrease in debtors

B
Issue of shares

C
Decrease in creditors

D
Sale of fixed assets

Solution

Funds received by a company due to sales, financing or investments. Cash inflow are used to gauge the overall financial health of a business, and a company with a large and stable cash inflow can be considered to be in a good financial position.
Question 8
1 / -0

Which of the following is not a cash outflow?

A
Increase in prepaid expenses

B
Increase in debtors

C
Increase in stock

D
Increase in creditor

Solution

Cash outflow is the amount of cash that a business disburses. Cash outflow results from expense or investments. A company may be required to seek additional finance if cash outflows exceed cash inflows.
Question 9
1 / -0

Which of the following is a false statement ?

A
Cash flow statement discloses the complete story of cash movements

B
Cash flow statement helps in evaluating financial policies and cash position

C
Cash flow statement is useful for long-term planning

D
Cash flow statement helps the management in determining policies regarding internal financial management
Question 10
1 / -0

Which of the following items is not an operating expense?

A
Advertising

B
Depreciation of office equipment

C
General management salaries

D
Loss on the sale of motor car

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Re-Attempt Weekly Quiz Competition

Cash Flow Statement Test - 14

Result

Cash Flow Statement Test - 14

Score

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Rank

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SHARING IS CARING

Question 1

Stores purchased on account

Stores purchased on cash

Payment of promissory note with cash

Declaration of a dividend

All of the above

Question 2

Depreciation

Dividends

Interest payments

Taxes

Solution

Question 3

Financing activities

Investing activities

Operating activities

Non-operating activities

Solution

Question 4

$$25\%$$

$$100\%$$

$$50\%$$

$$175\%$$

Question 5

A, B and C

B, C and D

C, D and A

None of the above

Solution

Question 6

Operating activities

Financing activities

Investing activities

None of the above

Solution

Question 7

Decrease in debtors

Issue of shares

Decrease in creditors

Sale of fixed assets

Solution

Question 8

Increase in prepaid expenses

Increase in debtors

Increase in stock

Increase in creditor

Solution

Question 9

Cash flow statement discloses the complete story of cash movements

Cash flow statement helps in evaluating financial policies and cash position

Cash flow statement is useful for long-term planning

Cash flow statement helps the management in determining policies regarding internal financial management

Question 10

Advertising

Depreciation of office equipment

General management salaries

Loss on the sale of motor car

User

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My Perfomance

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