Exam 7: Presentation of Cash Flows

Instead of paying cash for the purchase of land and buildings, an entity issued shares in exchange. This transaction would be correctly reflected as an investing activity on the cash flow statement.

The following information is given for Ollufsen Co. Ltd for the financial year ending 31 December: From this information, what is the net cash inflow from operating activities for the financial year ending 31 December?

Which of the following best describes the purpose of the cash flow statement?

What is accrual accounting?

Which of the following would be considered a cash inflow or outflow from investing activities?

The Hambone Soup Store reported the following information for its most recent fiscal year: Accounts payable increased by $39 000; inventory decreased by $27 000; net profit was $66 000; and depreciation expense was $15 000. On the cash flow statement, net cash flow from operating activities should be reported at:

Use the following information to calculate the cash from operating activities:

Which item would be included in cash flows from financing activities?

The following information about Thompson Corp. applies to the entity for the year ended 30 June. (a) What was Thompson Corp.'s cash flow from operating activities? (b) What was Thompson Corp.'s cash flow from investing activities? (c) What was Thompson Corp's cash flow from financing?

In the year ending 31 December, North Lakes Co. Ltd purchased machinery for $20 000, loaned $8000 to another company, borrowed $4000, and sold investments for $10 000. What was the net cash flow from investing activities for the year ending 31 December?

Which item would not be included in cash flows from operating activities?

Which of the following is not one of the items reported on a cash flow statement?

Under accrual-basis accounting, sales made on credit are usually reported as:

The cash flow statement is designed to fulfil all of the following purposes except:

Big Deals, Inc., had the following cash flows during March: What was the cash flow from investing activities?

Depreciation is an arbitrary allocation of the cost of an asset and as such it is not a cash item and is not reported on the cash flow statement, but it still needs to be deducted from operating profit in the calculation of net cash flows from operating activities.

Cash received from the sale of long-term assets is reported as:

Which financial statements cover a period of time?

The following information is given for Ollufsen Co. Ltd for the financial year ending 31 December: From this information and assuming dividends paid are treated in financing, what is the net cash inflow from financing activities for the financial year ending 31 December?

Sales on credit for the year totalled $125 000. The following information is also available: Bad debts written off during the year: $10 000 How much cash was collected from customers during the year?