Question 1

Which of the following is NOT a question that can be answered with the cash flow statement?

Accepted Answer

A)  How much inventory does the business have on hand at the end of the accounting period after cash purchases? 
B)  How much cash was provided or used by the business' operating activities for the accounting period? 
C)  How much cash did the business spend or receive in investing activities for the accounting period? 
D)  What was the cash movement for the accounting period? 
A)  How much inventory does the business have on hand at the end of the accounting period after cash purchases? 
B)  How much cash was provided or used by the business' operating activities for the accounting period? 
C)  How much cash did the business spend or receive in investing activities for the accounting period? 
D)  What was the cash movement for the accounting period?

Question 2

Cash flows are classified as profit activities, asset activities and liability activities on the cash flow statement.

Accepted Answer

A) True 
 B)False

Question 3

A business' cash return on owner's equity measures how much net cash from operating activities the business has generated with each dollar of:

Accepted Answer

A)  net sales. 
B)  owner's capital 
C)  net income plus interest. 
D)  non-current liabilities. 
A)  net sales. 
B)  owner's capital 
C)  net income plus interest. 
D)  non-current liabilities.

Question 4

The cash flow statement primarily provides information about a business' ability to remain ____________________ and to ___________.

Accepted Answer

The answer of The cash flow statement primarily provides information...

Question 5

Inflows of cash may come from decreases in assets other than cash.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would NOT be included in the cash from operating activities section?

Accepted Answer

A)  cash received from customers. 
B)  cash paid to suppliers. 
C)  cash paid to employees. 
D)  cash received from a new bank loan. 
A)  cash received from customers. 
B)  cash paid to suppliers. 
C)  cash paid to employees. 
D)  cash received from a new bank loan.

Question 7

In making a decision to postpone payments to suppliers, managers and owners must look 'beyond the numbers' and consider all the _______________ the decision affects.

Accepted Answer

The answer of In making a decision to postpone payments...

Question 8

Briefly explain the difference between cash from operating activities and net income.

Accepted Answer

The answer of Briefly explain the difference between cash from...

Question 9

The cash flow statement classifies cash collections from customers as a cash inflow from ___________ activities.

Accepted Answer

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

Question 10

The operating cash flow margin is calculated as:

Accepted Answer

A)  net sales divided by net cash flow provided by operating activities 
B)  net cash flow provided by operating activities divided by net sales 
C)  net cash flow provided by operating activities divided by average total assets 
D)  net cash flow provided by operating activities divided by average total equity 
A)  net sales divided by net cash flow provided by operating activities 
B)  net cash flow provided by operating activities divided by net sales 
C)  net cash flow provided by operating activities divided by average total assets 
D)  net cash flow provided by operating activities divided by average total equity

Question 11

The cash flow statement shows a business' cash flows in three sections: ____________________activities, ____________activities and ____________ activities.

Accepted Answer

The answer of The cash flow statement shows a business'...

Question 12

Many companies say sustainability reporting leads to higher cash flows.

Accepted Answer

A) True 
 B)False

Question 13

What is the difference between a cash flow statement and a cash budget?

Accepted Answer

The answer of What is the difference between a cash...

Question 14

The two methods of calculating and reporting a business' net cash flows from operating activities are the _________________ method and the____________________ method.

Accepted Answer

The answer of The two methods of calculating and reporting...

Question 15

The operating cash flow margin ratio describes how much:

Accepted Answer

A)  gross cash the business generated from each dollar of gross sales. 
B)  gross cash the business generated from each dollar of net sales. 
C)  net cash the business generated from each dollar of net sales. 
D)  net cash the business generated from each dollar of gross sales. 
A)  gross cash the business generated from each dollar of gross sales. 
B)  gross cash the business generated from each dollar of net sales. 
C)  net cash the business generated from each dollar of net sales. 
D)  net cash the business generated from each dollar of gross sales.

Question 16

Using the indirect method for preparing a cash flow statement, income flows are converted:

Accepted Answer

A)  from a cash basis to an accrual basis. 
B)  from an accrual basis to a cash basis. 
C)  from a historical cost basis to a cash basis. 
D)  from a transaction basis to an accrual basis. 
A)  from a cash basis to an accrual basis. 
B)  from an accrual basis to a cash basis. 
C)  from a historical cost basis to a cash basis. 
D)  from a transaction basis to an accrual basis.

Question 17

Financial statement users think that cash flows are a critical part of a business' ability to remain solvent.

Accepted Answer

A) True 
 B)False

Question 18

Cash return ratios are used to assess a business' cash flow performance in relation to its:

Accepted Answer

A)  resources. 
B)  revenue 
C)  net income 
D)  net income plus interest. 
A)  resources. 
B)  revenue 
C)  net income 
D)  net income plus interest.

Question 19

If the accounts receivable balance increases during the accounting period, this means _________ cash was collected than the amount of credit sales made for the period.

Accepted Answer

The answer of If the accounts receivable balance increases during...

Question 20

There are two methods for calculating the cash from operating activities, known as:

Accepted Answer

A)  inflow and outflow method. 
B)  direct and indirect method. 
C)  cash and accrual method. 
D)  positive and negative method. 
A)  inflow and outflow method. 
B)  direct and indirect method. 
C)  cash and accrual method. 
D)  positive and negative method.

Which of the following is NOT a question that can be answered with the cash flow statement?

Cash flows are classified as profit activities, asset activities and liability activities on the cash flow statement.

A business' cash return on owner's equity measures how much net cash from operating activities the business has generated with each dollar of:

The cash flow statement primarily provides information about a business' ability to remain __________ and to _.

Inflows of cash may come from decreases in assets other than cash.

Which of the following would NOT be included in the cash from operating activities section?

In making a decision to postpone payments to suppliers, managers and owners must look 'beyond the numbers' and consider all the _______________ the decision affects.

Briefly explain the difference between cash from operating activities and net income.

The cash flow statement classifies cash collections from customers as a cash inflow from ___________ activities.

The operating cash flow margin is calculated as:

The cash flow statement shows a business' cash flows in three sections: ________activities, activities and activities.

Many companies say sustainability reporting leads to higher cash flows.

What is the difference between a cash flow statement and a cash budget?

The two methods of calculating and reporting a business' net cash flows from operating activities are the _ method and the____ method.

The operating cash flow margin ratio describes how much:

Using the indirect method for preparing a cash flow statement, income flows are converted:

Financial statement users think that cash flows are a critical part of a business' ability to remain solvent.

Cash return ratios are used to assess a business' cash flow performance in relation to its:

If the accounts receivable balance increases during the accounting period, this means _________ cash was collected than the amount of credit sales made for the period.

There are two methods for calculating the cash from operating activities, known as:

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

Which of the following is NOT a question that can be answered with the cash flow statement?

Cash flows are classified as profit activities, asset activities and liability activities on the cash flow statement.

A business' cash return on owner's equity measures how much net cash from operating activities the business has generated with each dollar of:

The cash flow statement primarily provides information about a business' ability to remain ____________________ and to ___________.

Inflows of cash may come from decreases in assets other than cash.

Which of the following would NOT be included in the cash from operating activities section?

In making a decision to postpone payments to suppliers, managers and owners must look 'beyond the numbers' and consider all the _______________ the decision affects.

Briefly explain the difference between cash from operating activities and net income.

The cash flow statement classifies cash collections from customers as a cash inflow from ___________ activities.

The operating cash flow margin is calculated as:

The cash flow statement shows a business' cash flows in three sections: ____________________activities, ____________activities and ____________ activities.

Many companies say sustainability reporting leads to higher cash flows.

What is the difference between a cash flow statement and a cash budget?

The two methods of calculating and reporting a business' net cash flows from operating activities are the _________________ method and the____________________ method.

The operating cash flow margin ratio describes how much:

Using the indirect method for preparing a cash flow statement, income flows are converted:

Financial statement users think that cash flows are a critical part of a business' ability to remain solvent.

Cash return ratios are used to assess a business' cash flow performance in relation to its:

If the accounts receivable balance increases during the accounting period, this means _________ cash was collected than the amount of credit sales made for the period.

There are two methods for calculating the cash from operating activities, known as:

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

The cash flow statement primarily provides information about a business' ability to remain __________ and to _.

The cash flow statement shows a business' cash flows in three sections: ________activities, activities and activities.

The two methods of calculating and reporting a business' net cash flows from operating activities are the _ method and the____ method.