You are on page 1of 13

Cash Flow Statement MCQs I Multiple choice Questions CFS http://www.accountancyknowledge.

com/cash-flow-statement-mcqs/

 zaheerswati@gmail.com    

Home Courses  MCQs  Problems 

Papers  Formats  Result Assignment

U a

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

(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?

3 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

(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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

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 http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

Wrong !

20. Which of the following would be


considered an investing activity and a
source of cash?

(a) Purchase of equipment

Wrong !

 PLAY AGAIN !

Select Language Advertisement


Powered by Translate
2

Join Us

12 of 13 9/28/2018, 3:17 PM
Cash Flow Statement MCQs I Multiple choice Questions CFS http://www.accountancyknowledge.com/cash-flow-statement-mcqs/

Accountancy Knowledge
6,731 likes

Liked

You like this

Related Topics
Cash Flow Statement

Financial Statement

Financial Statement MCQs

   

13 of 13 9/28/2018, 3:17 PM