Question 1

Which of the three main financial statements was chronologically the last to be required to be included as part of the external financial reports?

Accepted Answer

A) Statement of comprehensive income. 
B) Statement of financial position. 
C) Statement of cash flows. 
D) None, all three reports have always been required to be included in external financial reports. 
A) Statement of comprehensive income. 
B) Statement of financial position. 
C) Statement of cash flows. 
D) None, all three reports have always been required to be included in external financial reports.

Question 2

A motor vehicle was purchased for $25,000, depreciated using the reducing-balance method for 3 years at 20% p.a. and was then sold for a price that was $1,600 more than the carrying amount of the vehicle. The cash received on the sale of the motor vehicle was:

Accepted Answer

A) $12,800. 
B) $14,400. 
C) $11,200. 
D) $11,600. 
A) $12,800. 
B) $14,400. 
C) $11,200. 
D) $11,600.

Question 3

GG Pty Ltd's accounting records show: $$\begin{array} { l c c } 
& \text { Beginning Balance } & \text { Ending Balance } \
& \text { '000 } & \text { '000 } \
& \$ & \$ \
\text { Accounts payable } & 12 & 8 \
\text { Inventory } & 25 & 21 \
\text { Cost of sales } & - & 50
\end{array}$$ Determine the amount of cash paid for inventory for the period.

Accepted Answer

A) $42,000. 
B) $48,000. 
C) $58,000. 
D) $50,000. 
A) $42,000. 
B) $48,000. 
C) $58,000. 
D) $50,000.

Question 4

Which of the following are not operating cash flows?

Accepted Answer

A) income tax paid. 
B) interest received. 
C) payments to suppliers. 
D) dividends paid to shareholders. 
A) income tax paid. 
B) interest received. 
C) payments to suppliers. 
D) dividends paid to shareholders.

Question 5

Which transaction would not appear in the body of a statement of cash flows?

Accepted Answer

A) Acquisition of assets by means of a share issue. 
B) Purchase of a building by incurring a mortgage to the seller. 
C) Conversion of a liability to equity. 
D) All of the above. 
A) Acquisition of assets by means of a share issue. 
B) Purchase of a building by incurring a mortgage to the seller. 
C) Conversion of a liability to equity. 
D) All of the above.

Question 6

$54,000 is owed to suppliers for inventory purchases at the beginning of the year and $44,000 is owed at the end of the year. If annual credit purchases of inventory are $180,000, the cash paid to suppliers for the year is:

Accepted Answer

A) $170,000. 
B) $150,000. 
C) $190,000. 
D) $214,000. 
A) $170,000. 
B) $150,000. 
C) $190,000. 
D) $214,000.

Question 7

The item that would not be included in the operating section of a statement of cash flows is:

Accepted Answer

A) Cash interest received. 
B) Cash received from the sale of surplus machinery. 
C) Cash received from sales. 
D) Cash payment of expenses. 
A) Cash interest received. 
B) Cash received from the sale of surplus machinery. 
C) Cash received from sales. 
D) Cash payment of expenses.

Question 8

In a healthy business, cash flow from operations will normally be:

Accepted Answer

A) negative. 
B) less than the profit. 
C) positive. 
D) none of the above. 
A) negative. 
B) less than the profit. 
C) positive. 
D) none of the above.

Question 9

From the following information, calculate net cash flow from operating activities. $$\begin{array}{l}
\begin{array} { l r r } 
\text { Sales } & & \$ 185,000 \
\text { Less Salaries } & \$ 40,000 & \
\text { Depreciation } & \$ 13,000 & \
\text { Other expenses } & \$ 10,000 & \
\text { Interest expense } & \$ 5,000 & \$ 68,000 \
\text { Profit } & & \$ 117,000 \

\end{array}\\
\text { Statement of financial position extract }\
\begin{array} { l r r } 
& \text { Start of } & \text { Endof } \
& \text { Period } & \text { Period } \
& \$ & \$ \
\text { Accounts payable } & 11,000 & 14,000 \
\text { Interest expense owing } & - & 1,000
\end{array}
\end{array}$$

Accepted Answer

A) $134,000. 
B) $115,000. 
C) $128,000. 
D) $126,000. 
A) $134,000. 
B) $115,000. 
C) $128,000. 
D) $126,000.

Question 10

Under accrual accounting, the receipt of cash from a trade debtor will:

Accepted Answer

A) have no impact on profit and increase cash. 
B) increase profit and increase cash. 
C) decrease profit and decrease cash. 
D) none of the above. 
A) have no impact on profit and increase cash. 
B) increase profit and increase cash. 
C) decrease profit and decrease cash. 
D) none of the above.

Which of the three main financial statements was chronologically the last to be required to be included as part of the external financial reports?

A motor vehicle was purchased for $25,000, depreciated using the reducing-balance method for 3 years at 20% p.a. and was then sold for a price that was $1,600 more than the carrying amount of the vehicle. The cash received on the sale of the motor vehicle was:

GG Pty Ltd's accounting records show: Beginning Balance Ending Balance '000 '000 \ \ Accounts payable 12 8 Inventory 25 21 Cost of sales - 50 Determine the amount of cash paid for inventory for the period.

Which of the following are not operating cash flows?

Which transaction would not appear in the body of a statement of cash flows?

$54,000 is owed to suppliers for inventory purchases at the beginning of the year and $44,000 is owed at the end of the year. If annual credit purchases of inventory are $180,000, the cash paid to suppliers for the year is:

The item that would not be included in the operating section of a statement of cash flows is:

In a healthy business, cash flow from operations will normally be:

Under accrual accounting, the receipt of cash from a trade debtor will:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters

Exam 6: Measuring and Reporting Cash Flows

Which of the three main financial statements was chronologically the last to be required to be included as part of the external financial reports?

A motor vehicle was purchased for $25,000, depreciated using the reducing-balance method for 3 years at 20% p.a. and was then sold for a price that was $1,600 more than the carrying amount of the vehicle. The cash received on the sale of the motor vehicle was:

GG Pty Ltd's accounting records show: Beginning Balance Ending Balance '000 '000 \ \ Accounts payable 12 8 Inventory 25 21 Cost of sales - 50 Determine the amount of cash paid for inventory for the period.

Which of the following are not operating cash flows?

Which transaction would not appear in the body of a statement of cash flows?

$54,000 is owed to suppliers for inventory purchases at the beginning of the year and $44,000 is owed at the end of the year. If annual credit purchases of inventory are $180,000, the cash paid to suppliers for the year is:

The item that would not be included in the operating section of a statement of cash flows is:

In a healthy business, cash flow from operations will normally be:

Under accrual accounting, the receipt of cash from a trade debtor will:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters