Which of the following is not a part of operating activities

Which of the following descriptions best describes cash flows from investing activities? Those activities that relate to:

A.

changing the size or financial structure of an entity;

B.

altering the composition of the debt of an organisation;

C.

the acquisition or disposal of non-current assets;

D.

restructuring the working capital components of a business.

6.

The following would be included amongst cash flows from financing activities:

A.

selling or otherwise disposing of inventory for cash;

B.

changing the size of total equity by issuing new shares for cash;

C.

paying creditors of a business;

D.

purchasing a new building for cash.

7.

The following activities would be presented amongst the cash flows from operating activities on a statement of cash flows.

8.

Cash flows from the following activities would be presented amongst the investing activities on a statement of cash flows.

9.

Cash flows from the following activities would be presented amongst the financing activities on a statement of cash flows.

Issue of shares and other equity

10.

For the purpose of presentation in a statement of cash flows, government taxes on the income of a business entity are regarded as:

D.

a non-cash item to be disclosed in the notes.

11.

The statement of cash flows presentation method that separates gross cash inflows from cash outflows is known as the:

12.

Greta Limited had net profit of $33 000 during the financial year. Included in profit was a depreciation expense of $14 000. Across the year Accounts receivable increased by $11 000 and Accounts payable increased by $5 000. The amount of cash flow from operating activities is:

13.

Stanton Stationery Limited had a net profit after tax of $50 000 for the financial year. Included in this profit was a depreciation expense of $10 000 and a gain on sale of Investments of $2 000. Accounts Receivable increased by $3 000; Inventories increased by $1 000 and Accounts Payable increased by $6 000. The cash flow from operating activities amounted to:

14.

During the financial year Sugar Limited had sales of $420 000. The opening balance of Accounts receivable was $90 000, and the closing balance was $127 000. Bad debts amounting to $7 000 were written off during the period. The cash receipts from sales during the year amounted to:

15.

During the financial year, Huang Limited has a Cost of Goods Sold amounting to $294 000. Opening balances were: Inventory $36 000; Accounts Payable $28 000. Closing balances were: Inventory $45 000; Accounts Payable $26 000. A discount of $1 000 for prompt payment was received. The amount of cash paid for goods purchased during the year was:

16.

Bright Limited has the following ledger account balances: Income tax payable Opening balance $52 000; Closing balance $33 000. The amount of tax expense accrued at the end of the year was $ 28 000. The amount that has been paid during the year to the taxation authorities for incomes taxes is:

17.

The following items could be included in the closing cash balance that is presented in the balance sheet of Mohammed Limited:

Short-term money market deposits

18.

When presenting the reconciliation note of operating profit and cash flows from operating activities:

A.

Increases in current assets during the year should be added back from the reconciliation

B.

Increases in current liabilities during the year should be added back from the reconciliation

C.

Dividend revenue should be deducted from the reconciliation where dividends received have been classified as operating cash flows.

D.

Dividend revenue should be deducted from the reconciliation where dividends received have been classified as financing cash flows.

19.

The following item would appear in a statement of cash flows:

A.

conversion of equity to debt;

B.

recognition of leased assets;

C.

acquisition of equipment in exchange for debentures;

D.

proceeds from the settlement of a court case.

20.

The appropriate presentation treatment for non-cash investing and financing transactions is to:

A.

show them in the statement of cash flows after the disclosure of the ending balance of cash;

B.

present them in the statement of cash flows above the operating activities;

C.

exclude them from the statement of cash flows;

D.

exclude them from the investing and financing sections and include them in the operating section.

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Chapter 7:   Funds Analysis, Cash Flow Analysis, and Financial Planning

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1. According to the accounting profession, which of the following would be considered a cash-flow item from an "investing" activity?cash inflow from interest income.
cash inflow from dividend income.
cash outflow to acquire fixed assets.
all of the above.
2. According to the Financial Accounting Standards Board (FASB), which of the following is a cash flow from a "financing" activity?cash outflow to the government for taxes.
cash outflow to shareholders as dividends.
cash outflow to lenders as interest.
cash outflow to purchase bonds issued by another company.
3. If the following are balance sheet changes:
         $5,005 decrease in accounts receivable
         $7,000 decrease in cash
        $12,012 decrease in notes payable
        $10,001 increase in accounts payable
a "use" of funds would be the:$7,000 decrease in cash.
$5,005 decrease in accounts receivable.
$10,001 increase in accounts payable.
$12,012 decrease in notes payable.
4. On an accounting statement of cash flows an "increase(decrease) in cash and cash equivalents" appears asa cash flow from operating activities.
a cash flow from investing activities.
a cash flow from financing activities.
none of the above.
5. Uses of funds include a (an):decrease in cash.
increase in any liability.
increase in fixed assets.
tax refund.
6. Which of the following would be included in a cash budget?depreciation charges.
dividends.
goodwill.
patent amortization.
7. An examination of the sources and uses of funds statement is part of:a forecasting technique.
a funds flow analysis.
a ratio analysis.
calculations for preparing the balance sheet.
8. Which of the following is NOT a cash outflow for the firm?depreciation.
dividends.
interest payments.
taxes.
9. Which of the following would be considered a use of funds?a decrease in accounts receivable.
a decrease in cash.
an increase in account payable.
an increase in cash.
10. The cash flow statement in the United States is most likely to appear usinga "supplementary method."
a "direct method."
an "indirect method."
a "flow of funds method."
11. For a profitable firm, total sources of funds will always          total uses of funds.be equal to
be greater than
be less than
have no consistent relationship to

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Which of the following is not a operating activity?

What are the 4 operational activities?

Which of the following is not a part of financial activities?

Which of the following is not part of cash flow from operating activities?