Question 1

The income statement and the cash flow statement are related because both report on a business' activities at a specific point in time.

Accepted Answer

A) True 
 B)False  False

Question 2

To understand a cash flow statement, you need to know the kinds of ____________________ that cause a business' cash inflows and outflows.

Accepted Answer

transactions

Question 3

Financial statement users assess a business' liquidity and solvency to see whether a business is generating enough cash to pay its debts.

Accepted Answer

A) True 
 B)False  True

Question 4

A business' ____________________ is the average time required to pay for inventory, sell the inventory and collect on the sales.

Accepted Answer

The answer of A business' ____________________ is the average time...

Question 5

To use a business' cash flow statement for evaluating its performance, you first must understand how the business' _____________ _______________ provides the cash flow information.

Accepted Answer

The answer of To use a business' cash flow statement...

Question 6

A business' cash flow statement shows:

Accepted Answer

A)  revenues and expenses. 
B)  assets, liabilities and owner's equity. 
C)  cash inflows and outflows. 
D)  monetary assets and liabilities. 
A)  revenues and expenses. 
B)  assets, liabilities and owner's equity. 
C)  cash inflows and outflows. 
D)  monetary assets and liabilities.

Question 7

One of the purposes of a cash flow statement is to reconcile:

Accepted Answer

A)  net income for the year to the closing cash balance. 
B)  revenues to cash received from customers. 
C)  net income for the year to cash from operating activities. 
D)  the movement in cash from the cash balance at the beginning of the accounting period to the cash balance at the end of the accounting period. 
A)  net income for the year to the closing cash balance. 
B)  revenues to cash received from customers. 
C)  net income for the year to cash from operating activities. 
D)  the movement in cash from the cash balance at the beginning of the accounting period to the cash balance at the end of the accounting period.

Question 8

The cash budget gives a description of the business':

Accepted Answer

A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  planned cash activities. 
A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  planned cash activities.

Question 9

The _________ ___________ is related to the cash flow statement in much the same way as it is related to the income statement.

Accepted Answer

The answer of The _________ ___________ is related to the...

Question 10

Inflows of cash come may come from increases in owner's equity.

Accepted Answer

A) True 
 B)False

Question 11

The operating cash flow margin is calculated as: net cash flows from operating activities divided by ______ ___________.

Accepted Answer

The answer of The operating cash flow margin is calculated...

Question 12

The income statement and cash flow statement are related because both report on:

Accepted Answer

A)  activities during an accounting period. 
B)  increases in liabilities. 
C)  increases in owner's equity. 
D)  movements in cash. 
A)  activities during an accounting period. 
B)  increases in liabilities. 
C)  increases in owner's equity. 
D)  movements in cash.

Question 13

Would depreciation appear as an operating, investing or financing activity in a cash flow statement?

Accepted Answer

The answer of Would depreciation appear as an operating, investing...

Question 14

In relation to cash from financing activities, the cash flow statement shows cash:

Accepted Answer

A)  to / from trading activities. 
B)  to / from the buying and selling of non-current assets. 
C)  to / from the funders of a business. 
D)  to / from the funders the employees of a business. 
A)  to / from trading activities. 
B)  to / from the buying and selling of non-current assets. 
C)  to / from the funders of a business. 
D)  to / from the funders the employees of a business.

Question 15

Inflows of cash may come from decreases in liabilities.

Accepted Answer

A) True 
 B)False

Question 16

Under accrual accounting, a business records its revenue and related expense transactions in a different accounting period than it provides goods or services.

Accepted Answer

A) True 
 B)False

Question 17

The calculation of cash paid to employees usually involves use of one __________ __________ account and one _________ ___________ account.

Accepted Answer

The answer of The calculation of cash paid to employees...

Question 18

What are cash flows from investing activities? Provide some examples to support your answer.

Accepted Answer

The answer of What are cash flows from investing activities?...

Question 19

The cash flow statement classifies cash payments to suppliers as a cash outflow from ___________ activities.

Accepted Answer

The answer of The cash flow statement classifies cash payments...

Question 20

When a business pays its accounts payable:

Accepted Answer

A)  it decreases assets and decreases owner's equity. 
B)  it decreases assets and decreases liabilities. 
C)  it decreases liabilities and increases owner's equity. 
D)  it increases assets and increases owner's equity. 
A)  it decreases assets and decreases owner's equity. 
B)  it decreases assets and decreases liabilities. 
C)  it decreases liabilities and increases owner's equity. 
D)  it increases assets and increases owner's equity.

The income statement and the cash flow statement are related because both report on a business' activities at a specific point in time.

To understand a cash flow statement, you need to know the kinds of ____________________ that cause a business' cash inflows and outflows.

Financial statement users assess a business' liquidity and solvency to see whether a business is generating enough cash to pay its debts.

A business' ____________________ is the average time required to pay for inventory, sell the inventory and collect on the sales.

To use a business' cash flow statement for evaluating its performance, you first must understand how the business' _ ___ provides the cash flow information.

A business' cash flow statement shows:

One of the purposes of a cash flow statement is to reconcile:

The cash budget gives a description of the business':

The _ ___ is related to the cash flow statement in much the same way as it is related to the income statement.

Inflows of cash come may come from increases in owner's equity.

The operating cash flow margin is calculated as: net cash flows from operating activities divided by _____.

The income statement and cash flow statement are related because both report on:

Would depreciation appear as an operating, investing or financing activity in a cash flow statement?

In relation to cash from financing activities, the cash flow statement shows cash:

Inflows of cash may come from decreases in liabilities.

Under accrual accounting, a business records its revenue and related expense transactions in a different accounting period than it provides goods or services.

The calculation of cash paid to employees usually involves use of one ____ account and one _ _______ account.

What are cash flows from investing activities? Provide some examples to support your answer.

The cash flow statement classifies cash payments to suppliers as a cash outflow from ___________ activities.

When a business pays its accounts payable:

Introduction to Business Accounting and the Role of Professional Skills

Developing a Business Plan: Cost-Volume-Profit Analysis

Developing a Business Plan: Budgeting

The Accounting System: Concepts and Applications

Recording, Storing and Reporting Accounting Information

Managing and Reporting Working Capital

The Income Statement: Content and Use

The Balance Sheet: Content, Use and Analysis

Sustainable Business

Short-Term Planning Decisions

Capital Expenditure Decisions

Filters

Exam 9: The Cash Flow Statement: Content and Use

The income statement and the cash flow statement are related because both report on a business' activities at a specific point in time.

To understand a cash flow statement, you need to know the kinds of ____________________ that cause a business' cash inflows and outflows.

Financial statement users assess a business' liquidity and solvency to see whether a business is generating enough cash to pay its debts.

A business' ____________________ is the average time required to pay for inventory, sell the inventory and collect on the sales.

To use a business' cash flow statement for evaluating its performance, you first must understand how the business' _____________ _______________ provides the cash flow information.

A business' cash flow statement shows:

One of the purposes of a cash flow statement is to reconcile:

The cash budget gives a description of the business':

The _________ ___________ is related to the cash flow statement in much the same way as it is related to the income statement.

Inflows of cash come may come from increases in owner's equity.

The operating cash flow margin is calculated as: net cash flows from operating activities divided by ______ ___________.

The income statement and cash flow statement are related because both report on:

Would depreciation appear as an operating, investing or financing activity in a cash flow statement?

In relation to cash from financing activities, the cash flow statement shows cash:

Inflows of cash may come from decreases in liabilities.

Under accrual accounting, a business records its revenue and related expense transactions in a different accounting period than it provides goods or services.

The calculation of cash paid to employees usually involves use of one __________ __________ account and one _________ ___________ account.

What are cash flows from investing activities? Provide some examples to support your answer.

The cash flow statement classifies cash payments to suppliers as a cash outflow from ___________ activities.

When a business pays its accounts payable:

Introduction to Business Accounting and the Role of Professional Skills

Developing a Business Plan: Cost-Volume-Profit Analysis

Developing a Business Plan: Budgeting

The Accounting System: Concepts and Applications

Recording, Storing and Reporting Accounting Information

Managing and Reporting Working Capital

The Income Statement: Content and Use

The Balance Sheet: Content, Use and Analysis

Sustainable Business

Short-Term Planning Decisions

Capital Expenditure Decisions

Filters

To use a business' cash flow statement for evaluating its performance, you first must understand how the business' _ ___ provides the cash flow information.

The _ ___ is related to the cash flow statement in much the same way as it is related to the income statement.

The operating cash flow margin is calculated as: net cash flows from operating activities divided by _____.

The calculation of cash paid to employees usually involves use of one ____ account and one _ _______ account.