Question 1

With what are operating activities concerned?

Accepted Answer

A) Borrowing or lending 
B) The sale or disposal of non-current assets 
C) The trading and/or service operations of the business 
D) None of the above 
A) Borrowing or lending 
B) The sale or disposal of non-current assets 
C) The trading and/or service operations of the business 
D) None of the above

Question 2

The purpose of the statement of cash flows is to provide information on:

Accepted Answer

A) profits. 
B) net worth. 
C) losses. 
D) cash inflows and outflows. 
A) profits. 
B) net worth. 
C) losses. 
D) cash inflows and outflows.

Question 3

An extract from the trial balance of RRR Pty Ltd as at 30 June 2018 shows: $\text { Income tax expense } \quad \$ 20,000$ If the income tax provided for at the end 2017 was $12 000 and taxation is paid in arrears in a lump sum, what amount will appear in the statement of cash flows for taxation paid by RRR Pty Ltd for the year ended 30 June 2018?

Accepted Answer

A) $20 000 
B) $12 000 
C) $16 000 
D) Nil 
A) $20 000 
B) $12 000 
C) $16 000 
D) Nil

Question 4

Which of these is a reason why a statement of cash flows could show a negative cash flow from operating activities even though the statement of comprehensive income showed a profit?

Accepted Answer

A) An increase in the amount of inventory held 
B) A decrease in the amount owing by debtors 
C) An increase in the amount owing by creditors 
D) An increase in depreciation charged 
A) An increase in the amount of inventory held 
B) A decrease in the amount owing by debtors 
C) An increase in the amount owing by creditors 
D) An increase in depreciation charged

Question 5

How would these items be classified in a statement of cash flows prepared for a hairdressing franchise? i. Payment of $600 for hairdressing supplies.
ii. Takings from customers for the month. 
iii. Capital paid into the business by the owner

Accepted Answer

A)  i. Operating outflow
ii. Operating inflow
iii. Does not appear in the statement of cash flows 
B)  i. Investing outflow
ii. Operating inflow
iii. Financing inflow 
C)  i. Operating outflow
ii. Operating inflow
iii. Financing inflow 
D)  i. Operating outflow
ii. Operating inflow
iii. Investing inflow 
A)  i. Operating outflow
ii. Operating inflow
iii. Does not appear in the statement of cash flows 
B)  i. Investing outflow
ii. Operating inflow
iii. Financing inflow 
C)  i. Operating outflow
ii. Operating inflow
iii. Financing inflow 
D)  i. Operating outflow
ii. Operating inflow
iii. Investing inflow

Question 6

If 'other expenses' in the profit and loss report is $35 000 including $8 000 of depreciation, accrued 'other expenses' at the beginning of the year is $1 000 and $0 at the end of the year, the figure for 'other expenses' that will appear in the statement of cash flows for the year is:

Accepted Answer

A) $25 000 
B) $28 000 
C) $32 000 
D) $33 000 
A) $25 000 
B) $28 000 
C) $32 000 
D) $33 000

Question 7

If $90 000 is owed by customers at the beginning of the year, $75 000 is owed at the end and credit sales are $120 000, the cash received from customers is:

Accepted Answer

A) $120 000 
B) $80 000 
C) $125 000 
D) $135 000 
A) $120 000 
B) $80 000 
C) $125 000 
D) $135 000

Question 8

If the balance of the share capital account is $300 000 at the beginning of the year and $410 000 at the end of the year, and there has been a 1 for 6 bonus issue of shares at the start of the year, the amount that will appear in the statement of cash flows for proceeds from the issue of shares is:

Accepted Answer

A) $360 000 
B) $300 000 
C) $410 000 
D) $60 000 
A) $360 000 
B) $300 000 
C) $410 000 
D) $60 000

Question 9

In the statement of cash flows, the total of net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities for the period equals:

Accepted Answer

A) the cash balances at the beginning of the period. 
B) the cash balances at the end of the period. 
C) profit. 
D) total net increase or decrease in cash held for the period. 
A) the cash balances at the beginning of the period. 
B) the cash balances at the end of the period. 
C) profit. 
D) total net increase or decrease in cash held for the period.

Question 10

Cash received from the issue of shares will appear in which section of the statement of cash flows?

Accepted Answer

A) Investing activities section 
B) Does not appear in the statement 
C) Operating activities section 
D) Financing activities section 
A) Investing activities section 
B) Does not appear in the statement 
C) Operating activities section 
D) Financing activities section

With what are operating activities concerned?

The purpose of the statement of cash flows is to provide information on:

Which of these is a reason why a statement of cash flows could show a negative cash flow from operating activities even though the statement of comprehensive income showed a profit?

How would these items be classified in a statement of cash flows prepared for a hairdressing franchise? i. Payment of $600 for hairdressing supplies. ii. Takings from customers for the month. iii. Capital paid into the business by the owner

If 'other expenses' in the profit and loss report is $35 000 including $8 000 of depreciation, accrued 'other expenses' at the beginning of the year is $1 000 and $0 at the end of the year, the figure for 'other expenses' that will appear in the statement of cash flows for the year is:

If $90 000 is owed by customers at the beginning of the year, $75 000 is owed at the end and credit sales are $120 000, the cash received from customers is:

If the balance of the share capital account is $300 000 at the beginning of the year and $410 000 at the end of the year, and there has been a 1 for 6 bonus issue of shares at the start of the year, the amount that will appear in the statement of cash flows for proceeds from the issue of shares is:

In the statement of cash flows, the total of net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities for the period equals:

Cash received from the issue of shares will appear in which section of the statement of cash flows?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Recording Transactionsthe Journal and Ledger Accounts

Accounting Systems and Internal Control

Introduction to Limited Companies

Regulatory Framework for Companies

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Planning and Budgeting

Capital Investment Decisions

Filters

Exam 8: Measuring and Reporting Cash Flows

With what are operating activities concerned?

The purpose of the statement of cash flows is to provide information on:

Which of these is a reason why a statement of cash flows could show a negative cash flow from operating activities even though the statement of comprehensive income showed a profit?

How would these items be classified in a statement of cash flows prepared for a hairdressing franchise? i. Payment of $600 for hairdressing supplies. ii. Takings from customers for the month. iii. Capital paid into the business by the owner

If 'other expenses' in the profit and loss report is $35 000 including $8 000 of depreciation, accrued 'other expenses' at the beginning of the year is $1 000 and $0 at the end of the year, the figure for 'other expenses' that will appear in the statement of cash flows for the year is:

If $90 000 is owed by customers at the beginning of the year, $75 000 is owed at the end and credit sales are $120 000, the cash received from customers is:

If the balance of the share capital account is $300 000 at the beginning of the year and $410 000 at the end of the year, and there has been a 1 for 6 bonus issue of shares at the start of the year, the amount that will appear in the statement of cash flows for proceeds from the issue of shares is:

In the statement of cash flows, the total of net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities for the period equals:

Cash received from the issue of shares will appear in which section of the statement of cash flows?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Recording Transactionsthe Journal and Ledger Accounts

Accounting Systems and Internal Control

Introduction to Limited Companies

Regulatory Framework for Companies

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Planning and Budgeting

Capital Investment Decisions

Filters