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Quiz for purpose and elements of cash flow statement

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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

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