Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
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Cash Flow Statement MCQs
Contents [show]
MCQs 1-10
1. Which of the following items would be
subtracted from net income when using
the indirect method of calculating cash
flows provided by operating activities?
(a) Depreciation expense
1 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
Wrong !
2. Which of the following would be
considered a cash-flow item from a
"financing" activity?
(d) A cash outflow to purchase bonds issued by another
company
Wrong !
3. The method for presenting Net cash
provided by operating activities that
starts with net income and adjusts it for
items that affected reported net income
but that did not affect cash is called the? 2
2 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
(c) Indirect method
Correct !
4. Cash paid for preferred stock
dividends should be shown on the
statement of cash flows under?
(b) Financing activities
Correct !
5. Which of the following would not be 2
considered a cash flow from “operating”
activities?
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Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
(c) Tax payments
Wrong !
6. In the long run, a business must
generate positive net cash flow from
which of the following activities, if it is
to survive?
(b) Financing activities
Wrong !
2
7. Depreciation is added back to profit
4 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
when arriving at the cash flow from
operating activities because?
(b) Depreciation does not affect profit
Wrong !
8. A company purchased the land in
exchange for the capital stock; it would
affect which of the following?
(d) It would not affect any section
2
Correct !
5 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
9. Which of the following would not
represent the cash outflows for the
business?
(b) The sale of land for cash
Correct !
10. The statement of cash flows does not
include cash inflows and outflows for
which of the following activities?
(a) Financing activities
6 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
Wrong !
PLAY AGAIN !
MCQs 11-20
11. The primary purpose of the
statement of cash flows is to?
(a) Provide information about the investing and financing
activities during a period
Correct !
2
12. If a company purchased treasury
stock with cash, this would be reported
7 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
on the statement of cash flows as?
(a) An operating cash outflow
Wrong !
13. When equipment is sold for cash, the
amount received is reflected as cash?
(b) Inflow in the financing section
Wrong ! 2
8 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
14. Which of the following is not an
example of cash equivalents?
(b) Money market accounts
Wrong !
15. Which of the following cash flows
results from an operating activity?
(b) Repaying note payable
2
Wrong !
9 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
16. Which of the following cash flows
results from a financing activity?
(c) Purchasing an investment in another company
Wrong !
17. Which of the following cash flows
results from a financing activity?
(a) Borrowing money from the bank
2
Correct !
10 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
18. The two approaches to reporting
cash flows provided by operating
activities are?
(a) Direct and indirect methods
Correct !
19. In preparing cash flows provided by
operating activities using the indirect
method, which of the following items is
added to net income?
(b) Gains on investing and financing transactions
11 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
Wrong !
20. Which of the following would be
considered an investing activity and a
source of cash?
(a) Purchase of equipment
Wrong !
PLAY AGAIN !
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Cash Flow Statement MCQs I Multiple choice Questions CFS [Link]
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