Question 1

According to AASB 107/IAS 7 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 2

In accordance with AASB 107/IAS 7 Statement of Cash Flows 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)  presented 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. 
A)  excluded from a statement of cash flows. 
B)  presented 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.

Question 3

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)  Depositing cash on hand in the bank account. 
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)  Depositing cash on hand in the bank account.

Question 4

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.

Question 5

Bank borrowings are ordinarily classified as:

Accepted Answer

A)  operating activities, except for bank overdrafts that are repayable on demand and which form an integral part of an entity's cash management. 
B)  investing activities, except for bank overdrafts that are repayable on demand and which form an integral part of an entity's cash management. 
C)  financing activities, except for bank overdrafts that are repayable on demand. 
D)  financing activities, except for bank overdrafts that are repayable on demand and which form an integral part of an entity's cash management. 
A)  operating activities, except for bank overdrafts that are repayable on demand and which form an integral part of an entity's cash management. 
B)  investing activities, except for bank overdrafts that are repayable on demand and which form an integral part of an entity's cash management. 
C)  financing activities, except for bank overdrafts that are repayable on demand. 
D)  financing activities, except for bank overdrafts that are repayable on demand and which form an integral part of an entity's cash management.

Question 6

For cash flow reporting purposes, operating activities include:

Accepted Answer

A)  buying and selling of non-current assets. 
B)  incurring and extinguishing equity and debt. 
C)  acquisition and disposal of investments. 
D)  activities not otherwise classified as financing and investing. 
A)  buying and selling of non-current assets. 
B)  incurring and extinguishing equity and debt. 
C)  acquisition and disposal of investments. 
D)  activities not otherwise classified as financing and investing.

Question 7

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 8

AASB 107/IAS 7 encourages, but does NOT require, the disclosure of:
I - The amount of undrawn borrowing facilities that may be available for future operating activities and to settle capital commitments, indicating any restrictions on the use of these facilities.
II - The aggregate amount of cash flows that represent increases in operating capacity separately from those cash flows that are required to maintain operating capacity.
III - The amount of the cash flows arising from the operating, investing and financing activities of each reportable segment.
IV - The name(s) of the entity's bankers.

Accepted Answer

A)  I, II and IV. 
B)  II, III and IV. 
C)  I, III and IV. 
D)  I, II and III. 
A)  I, II and IV. 
B)  II, III and IV. 
C)  I, III and IV. 
D)  I, II and III.

Question 9

During the financial year Marina Limited had sales of $720 000. The opening balance of accounts receivable was $103 000, and the closing balance was $139 000. Bad debts amounting to $34 000 were written off during the period. The cash receipts from customers during the year amounted to:

Accepted Answer

A)  $650 000. 
B)  $718 000. 
C)  $722 000. 
D)  $790 000. 
A)  $650 000. 
B)  $718 000. 
C)  $722 000. 
D)  $790 000.

Exam 17: Statement of Cash Flows

According to AASB 107/IAS 7 Statement of Cash Flows, which of the following items does NOT fall within the definition of cash?

In accordance with AASB 107/IAS 7 Statement of Cash Flows investing and financing transactions that do NOT require the use of cash or cash equivalents should be:

Which of the following items would be presented in a statement of cash flows?

Which of the following items is classified as part of 'operating activities' in the statement of cash flows?

Bank borrowings are ordinarily classified as:

For cash flow reporting purposes, operating activities include:

Operating activities on a statement of cash flows are generally associated with:

During the financial year Marina Limited had sales of $720 000. The opening balance of accounts receivable was $103 000, and the closing balance was $139 000. Bad debts amounting to $34 000 were written off during the period. The cash receipts from customers during the year amounted to:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share-Based Payment

Revenue

Presentation of Financial Statements

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Reporting

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

Filters