Question 1

Which of the following would not be included on the operating activity section of a cash flow statement?

Accepted Answer

A)  Payment to suppliers 
B)  Purchase of inventory 
C)  Payment of loan 
D)  Payment of tax 
A)  Payment to suppliers 
B)  Purchase of inventory 
C)  Payment of loan 
D)  Payment of tax

Question 2

From the following information,calculate the amount to be shown as income tax paid on the cash flow statement (year 2):
 
Income statement for year 2 showed tax charge of £24,000

Accepted Answer

A)  £30,000 
B)  £34,000 
C)  £24,000 
D)  £14,000 
A)  £30,000 
B)  £34,000 
C)  £24,000 
D)  £14,000

Question 3

From the following information,calculate the cash flow from operating activities:
$$\begin{array} { l c } 
\text { Net Income } & 110,000 \
\text { Depreciation } & 25,000 \
\text { Decrease in accounts receivable } & 35,000 \
\text { Increase in accounts payable } & 9,000 \
\text { Decrease in inventory } & 30,000 \
\text { Interest paid } & 7,000 \
\text { Tax paid } & 15,000
\end{array}$$

Accepted Answer

A)  £59,000 net cash inflow 
B)  £187,000 net cash inflow 
C)  £119,000 net cash inflow 
D)  £99,000 net cash inflow 
A)  £59,000 net cash inflow 
B)  £187,000 net cash inflow 
C)  £119,000 net cash inflow 
D)  £99,000 net cash inflow

Question 4

Which of the following statements is false?

Accepted Answer

A)  Not all revenues are receipts of cash 
B)  Some receipts of cash do not add to profits 
C)  Not all expenses are payments of cash 
D)  All payments of cash are expenses 
A)  Not all revenues are receipts of cash 
B)  Some receipts of cash do not add to profits 
C)  Not all expenses are payments of cash 
D)  All payments of cash are expenses

Question 5

The purchase of fixed assets would appear on the cash flow statement as a:

Accepted Answer

A)  Financing activity 
B)  Operating activity 
C)  Investing activity 
D)  Debt activity 
A)  Financing activity 
B)  Operating activity 
C)  Investing activity 
D)  Debt activity

Which of the following would not be included on the operating activity section of a cash flow statement?

From the following information,calculate the amount to be shown as income tax paid on the cash flow statement (year 2): Income statement for year 2 showed tax charge of £24,000

From the following information,calculate the cash flow from operating activities: Net Income 110,000 Depreciation 25,000 Decrease in accounts receivable 35,000 Increase in accounts payable 9,000 Decrease in inventory 30,000 Interest paid 7,000 Tax paid 15,000

Which of the following statements is false?

The purchase of fixed assets would appear on the cash flow statement as a:

The Statement of Financial Position Balance Sheetand What It Tells Us

The Income Statement Profit and Loss Account

The Development of Financial Reporting

Ratios and Interpretation: a Straightforward Introduction

How the Stock Market Assesses Company Performance

Advanced Interpretation of Company and Group Accounts

Current Issues in Financial Reporting

Bookkeeping to Trial Balance

Trial Balance to Final Accounts

Financing a Business

Management of Working Capital

Introduction to Management Accounting

Investment Appraisal

Budgetary Planning and Control

Absorption Costing

Marginal Costing and Decision-Making

Standard Costing and Variance Analysis

Incomplete Records

Filters

Exam 6: Cash Flow Statements: Understanding and Preparation

Which of the following would not be included on the operating activity section of a cash flow statement?

From the following information,calculate the amount to be shown as income tax paid on the cash flow statement (year 2): Income statement for year 2 showed tax charge of £24,000

From the following information,calculate the cash flow from operating activities: Net Income 110,000 Depreciation 25,000 Decrease in accounts receivable 35,000 Increase in accounts payable 9,000 Decrease in inventory 30,000 Interest paid 7,000 Tax paid 15,000

Which of the following statements is false?

The purchase of fixed assets would appear on the cash flow statement as a:

The Statement of Financial Position Balance Sheetand What It Tells Us

The Income Statement Profit and Loss Account

The Development of Financial Reporting

Ratios and Interpretation: a Straightforward Introduction

How the Stock Market Assesses Company Performance

Advanced Interpretation of Company and Group Accounts

Current Issues in Financial Reporting

Bookkeeping to Trial Balance

Trial Balance to Final Accounts

Financing a Business

Management of Working Capital

Introduction to Management Accounting

Investment Appraisal

Budgetary Planning and Control

Absorption Costing

Marginal Costing and Decision-Making

Standard Costing and Variance Analysis

Incomplete Records

Filters