VENTURA, MARY MICKAELLA R

BSA-2C – AMONG US

PAGE 320-321 – INTER 3

PROBLEM 4: MUTIPLE CHOICE – THEORY

1. The historical changes of cash flows are classified on the statement of cash flows info.

a. Operating activities c. Financing activities

b. Investing activities d. all of the above

2. These include transactions that affect long-term assets and other non-operating assets.

a. Operating activities c. Financing activities

b. Investing activities d. all of the above

3. These include transactions that enter into the determination of profit or loss. This transaction
normally affects income statement account.

a. Operating activities c. Financing activities

b. Investing activities d. all of the above

4. These includes transactions that affect equity and non-operating liabilities.

a. Operating activities c. Financing activities

b. Investing activities d. all of the above

5. Which of the following statements is correct regarding the provisions PAS 7?

a. Only transactions that affected cash are included in the statement of cash flows.

b. Non-cash transactions are excluded from the statement of cash flows and disclose only.

c. Cash flows from operating activities may be reported using either direct method or indirect method.

d. All of the above

6. According to PAS 7, interest income that is received in cash is presented in the statement of cash
flows as

a. Operating activities c. Financing activities

b. Investing activities d. a or b

7. According to PAS 7, interest expense that is paid in cash is presented in the statement of cash flows as

a. Operating activities c. Financing activities

b. Investing activities d. a or c

8. According to PAS 7, dividends paid in cash are presented in the statement of cash flows as

a. Operating activities c. Financing activities

b. Investing activities d. a or c

9. It refers to a method of presenting the operating activities section of a statement of cash flows
whereby each

major class of gross cash receipts and gross cash payments are shown separately.

a. Direct method b. Nature of expense method

c. Indirect method d. Function of expense method

10. It refers to a method of presenting the operating activities section of a statement of cash flows
whereby the

accrual basis profit or loss is adjusted for noncash items and changes in operating assets and liabilities.

a. Direct method b. Nature of expense method

c. Indirect method d. Function of expense method