Cash Flow Statement Quiz

What does the Statement of Cash Flow provide information about?

• Profit margins

• Inventory levels

• Cash receipts and cash payments

• Sales revenue

Which of the following is NOT a category of cash flows in a Cash Flow Statement?

• Operating Activities

• Investing Activities

• Marketing Activities

• Financing Activities

What is included in Cash Flows from Operating Activities?

• Repayment of loans

• Normal operating cycle transactions

• Sale of equipment

• Acquisition of property

Which of the following is a Cash Outflow in Investing Activities?

• Cash receipts from sale of property

• Cash investment from owners

• Cash receipts from sale of intangible assets

• Cash payment to acquire property

What is the first step in preparing a Cash Flow Statement?

• List Cash Flows from Operating Activities

• List Cash Flows from Financing Activities

• Compute Net Cash

• Create the heading

What does the Cash Flows from Financing Activities usually arise from?

• Changes in current assets

• Changes in non-current liabilities and owner's equity

• Cash payments to suppliers

• Sales of inventory

Which of the following is a Cash Inflow in Financing Activities?

• Cash distribution to owners

• Repayment of bank loans

• Cash proceeds from bank loans

• Interest paid on loans

What is the purpose of the Cash Flow Statement?

• To assess inventory levels

• To calculate taxes owed

• To provide information about cash receipts and payments

• To show profit margins

How do you compute the Net Increase (decrease) in Cash?

• Add all cash inflows and deduct all cash outflows

• Use only financing activities

• Subtract cash outflows from cash inflows

• Only consider operating activities

What is included in Cash Flows from Investing Activities?

• Cash payments for operating expenses

• Cash receipts from revenues

• Cash receipts from sales of long-term assets

• Cash payments to suppliers