Question 1

The following item is classified as a 'financing activity' in the Statement of Cash Flows:

Accepted Answer

A) interest paid on debentures 
B) cash received from accounts receivable 
C) cash payment on redemption of the company's debentures 
D) cash payment to purchase debentures of another entity. 
A) interest paid on debentures 
B) cash received from accounts receivable 
C) cash payment on redemption of the company's debentures 
D) cash payment to purchase debentures of another entity. C

Question 2

Brett Limited had a net profit after tax of $850 000 for the financial year.Included in this profit was:
-Depreciation expense of $120 000
-Gain on sale of Investments of $28 000
Also,Accounts Receivable increased by $39 000 and Inventories decreased by $12 000.The cash flow from operating activities during the year was:

Accepted Answer

A) $731 000 
B) $785 000 
C) $915 000 
D) $969 000. 
A) $731 000 
B) $785 000 
C) $915 000 
D) $969 000. C

Question 3

What is the net cash inflow (outflow)from financing activities?

Accepted Answer

A) $38 000 inflow 
B) $40,000 inflow 
C) $42,000 inflow 
D) $(2000)outflow. 
A) $38 000 inflow 
B) $40,000 inflow 
C) $42,000 inflow 
D) $(2000)outflow. A

Question 4

Identify the three ways to classify cash flows.

Accepted Answer

AASB 107 specifies that cash i

Question 5

Items classified as financing activities on an entity's Statement of Cash Flows are usually associated with:

Accepted Answer

A) movements in non-current liabilities and equity 
B) sales of goods and services by the entity 
C) disposal of non-current assets 
D) purchase on shares by the entity. 
A) movements in non-current liabilities and equity 
B) sales of goods and services by the entity 
C) disposal of non-current assets 
D) purchase on shares by the entity.

Question 6

According to AASB 107 Statement of Cash Flows,which of the following items does not fall within the definition of cash?

Accepted Answer

A) Bank notes and coins 
B) Non-bank bills that are readily convertible to cash 
C) Deposits on the short-term money market with a term of less than 3 months 
D) Accounts receivable 
A) Bank notes and coins 
B) Non-bank bills that are readily convertible to cash 
C) Deposits on the short-term money market with a term of less than 3 months 
D) Accounts receivable

Question 7

During the financial year Sugianto Limited had sales of $42 000.The opening balance of accounts receivable was $9000,and the closing balance was $12 700.Bad debts amounting to $700 were written off during the period.The cash receipts from sales during the year amounted to:

Accepted Answer

A) $37 600 
B) $39 000 
C) $38 300 
D) $45 700. 
A) $37 600 
B) $39 000 
C) $38 300 
D) $45 700.

Question 8

Which of the following items must be separately disclosed in the Statement of Cash Flows?
I.Dividends paid
II.Interest received
III.Dividends received
IV.Interest paid
V.Auditor's remuneration paid

Accepted Answer

A) I,II,III and IV only 
B) II,III and IV only 
C) I,II and V only 
D) II,III,IV and V only 
A) I,II,III and IV only 
B) II,III and IV only 
C) I,II and V only 
D) II,III,IV and V only

Question 9

What is the net cash inflow (outflow)from investing activities?

Accepted Answer

A) $2000 inflow 
B) $6000 inflow 
C) $(2000)outflow 
D) $(4000)outflow. 
A) $2000 inflow 
B) $6000 inflow 
C) $(2000)outflow 
D) $(4000)outflow.

Question 10

Which of the following items would be presented in a Statement of Cash Flows?

Accepted Answer

A) Payment of dividends through a share investment scheme 
B) Acquisition of an investment in a subsidiary for consideration consisting of an exchange of non-current assets and liabilities 
C) Proceeds from the issue of debentures 
D) Refinancing of long-term debt 
A) Payment of dividends through a share investment scheme 
B) Acquisition of an investment in a subsidiary for consideration consisting of an exchange of non-current assets and liabilities 
C) Proceeds from the issue of debentures 
D) Refinancing of long-term debt

Question 11

The following cash flow activities are regarded as investing cash flows:

Accepted Answer

A) income taxes paid 
B) interest paid 
C) acquisition of subsidiary net of cash acquired 
D) proceeds from issue of debentures. 
A) income taxes paid 
B) interest paid 
C) acquisition of subsidiary net of cash acquired 
D) proceeds from issue of debentures.

Question 12

What are the deemed advantages to financial statement users of the information contained in a Statement of Cash Flows?

Accepted Answer

It is argued that the provision of cash

Question 13

AASB 107 Statement of Cash Flows,requires that investing and financing transactions that do not require the use of cash or cash equivalents should be:

Accepted Answer

A) excluded from a Statement of Cash Flows 
B) included in a Statement of Cash Flows before operating,investing and financing activities 
C) presented in the Statement of Cash Flows after operating activities and before investing and financing activities; 
D) presented in a Statement of Cash Flows after the operating,investing and financing activities have been presented. 
A) excluded from a Statement of Cash Flows 
B) included in a Statement of Cash Flows before operating,investing and financing activities 
C) presented in the Statement of Cash Flows after operating activities and before investing and financing activities; 
D) presented in a Statement of Cash Flows after the operating,investing and financing activities have been presented.

Question 14

Discuss the purpose of the Statement of Cash Flows.

Accepted Answer

The purpose of a Statement of Cash Flows

Question 15

What is the net cash inflow from operating activities?

Accepted Answer

A) $45 000 
B) $59 000 
C) $60 000 
D) $61 000. 
A) $45 000 
B) $59 000 
C) $60 000 
D) $61 000.

Question 16

Operating activities on a Statement of Cash Flows are generally associated with:

Accepted Answer

A) movements in non-current liabilities of an entity 
B) revenues and expenses of an entity 
C) acquisitions of non-current assets of an entity 
D) changes in equity of an entity. 
A) movements in non-current liabilities of an entity 
B) revenues and expenses of an entity 
C) acquisitions of non-current assets of an entity 
D) changes in equity of an entity.

Question 17

The following information was extracted from the records of Ustinof Limited
-Opening balance of Equipment,$360 000
-Closing balance of Equipment,$400 000
-Cost of new Equipment,$80 000
-Proceeds from sale of Equipment,$6000 (Cost $40 000; Carrying amount $10 000)
The total cash flows from investing activities is determined as

Accepted Answer

A) $40 000 cash outflow 
B) $74 000 cash outflow 
C) $76 000 cash outflow 
D) $80 000 cash outflow. 
A) $40 000 cash outflow 
B) $74 000 cash outflow 
C) $76 000 cash outflow 
D) $80 000 cash outflow.

Question 18

Katsis Limited had the following cash flows during the reporting period:
-Purchase of intangibles $30 000
-Proceeds from sale of plant $28 000
-Receipts from customers $832 000
-Payments to suppliers $593 000
-Interest received $17 600
-Income taxes paid $45 500
The net cash flows from operating activities was:

Accepted Answer

A) $211 100 
B) $239 100 
C) $256 600 
D) $269 100. 
A) $211 100 
B) $239 100 
C) $256 600 
D) $269 100.

Question 19

Explain why the cash flows from operating activities are reported separately on a Statement of Cash Flows.

Accepted Answer

Cash flows from operations are regarded

Question 20

Which of the following items is classified as part of 'operating activities' in the Statement of Cash Flows?

Accepted Answer

A) Depreciation of non-current assets 
B) Receipts from customers from the sale of goods 
C) Bad debts expense 
D) Proceeds from the sale of non-current assets 
A) Depreciation of non-current assets 
B) Receipts from customers from the sale of goods 
C) Bad debts expense 
D) Proceeds from the sale of non-current assets

The following item is classified as a 'financing activity' in the Statement of Cash Flows:

What is the net cash inflow (outflow)from financing activities?

Identify the three ways to classify cash flows.

Items classified as financing activities on an entity's Statement of Cash Flows are usually associated with:

According to AASB 107 Statement of Cash Flows,which of the following items does not fall within the definition of cash?

During the financial year Sugianto Limited had sales of $42 000.The opening balance of accounts receivable was $9000,and the closing balance was $12 700.Bad debts amounting to $700 were written off during the period.The cash receipts from sales during the year amounted to:

Which of the following items must be separately disclosed in the Statement of Cash Flows? I.Dividends paid II.Interest received III.Dividends received IV.Interest paid V.Auditor's remuneration paid

What is the net cash inflow (outflow)from investing activities?

Which of the following items would be presented in a Statement of Cash Flows?

The following cash flow activities are regarded as investing cash flows:

What are the deemed advantages to financial statement users of the information contained in a Statement of Cash Flows?

AASB 107 Statement of Cash Flows,requires that investing and financing transactions that do not require the use of cash or cash equivalents should be:

Discuss the purpose of the Statement of Cash Flows.

What is the net cash inflow from operating activities?

Operating activities on a Statement of Cash Flows are generally associated with:

Explain why the cash flows from operating activities are reported separately on a Statement of Cash Flows.

Which of the following items is classified as part of 'operating activities' in the Statement of Cash Flows?

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Accounting for Investments in Associates

Insolvency and Liquidation

Filters

Exam 14: Disclosure: Statement of Cash Flows

The following item is classified as a 'financing activity' in the Statement of Cash Flows:

What is the net cash inflow (outflow)from financing activities?

Identify the three ways to classify cash flows.

Items classified as financing activities on an entity's Statement of Cash Flows are usually associated with:

According to AASB 107 Statement of Cash Flows,which of the following items does not fall within the definition of cash?

During the financial year Sugianto Limited had sales of $42 000.The opening balance of accounts receivable was $9000,and the closing balance was $12 700.Bad debts amounting to $700 were written off during the period.The cash receipts from sales during the year amounted to:

Which of the following items must be separately disclosed in the Statement of Cash Flows? I.Dividends paid II.Interest received III.Dividends received IV.Interest paid V.Auditor's remuneration paid

What is the net cash inflow (outflow)from investing activities?

Which of the following items would be presented in a Statement of Cash Flows?

The following cash flow activities are regarded as investing cash flows:

What are the deemed advantages to financial statement users of the information contained in a Statement of Cash Flows?

AASB 107 Statement of Cash Flows,requires that investing and financing transactions that do not require the use of cash or cash equivalents should be:

Discuss the purpose of the Statement of Cash Flows.

What is the net cash inflow from operating activities?

Operating activities on a Statement of Cash Flows are generally associated with:

Explain why the cash flows from operating activities are reported separately on a Statement of Cash Flows.

Which of the following items is classified as part of 'operating activities' in the Statement of Cash Flows?

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Accounting for Investments in Associates

Insolvency and Liquidation

Filters