STIE WIKARA CashFlows WA ol 2023
Cash Flows Worksheet
1. What is the primary purpose of a cash flow statement?
a) To show profitability
b) To display assets and liabilities
c) To analyze cash inflows and outflows
d) To report revenue and expenses
2. Which section of the cash flow statement includes the receipt of cash from customers?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
3. Where would the purchase of new equipment be recorded on the cash flow statement?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
4. Dividend payments are typically reported in which section of the cash flow statement?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
5. What does a positive net change in cash indicate?
a) Cash inflows are greater than cash outflows
b) Cash outflows are greater than cash inflows
c) Profitability is declining
d) Operating activities are inefficient
6. Which financial statement is used to calculate the net change in cash?
a) Income Statement
b) Balance Sheet
c) Cash Flow Statement
d) Statement of Retained Earnings
7. What is the formula for calculating net change in cash?
a) Beginning Cash + Cash Inflows - Cash Outflows
b) Beginning Cash - Cash Inflows + Cash Outflows
c) Beginning Cash + Cash Inflows + Cash Outflows
d) Beginning Cash - Cash Inflows - Cash Outflows
STIE WIKARA CashFlows WA ol 2023
8. Which activity involves borrowing money or issuing stock?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
9. What does a negative net change in cash imply?
a) The company is profitable
b) The company is experiencing financial distress
c) Cash inflows exceed cash outflows
d) The company is not generating revenue
10. Where are changes in short-term investments typically reported?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
11. Which section of the cash flow statement includes interest payments?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
12. Where would the purchase of inventory be recorded on the cash flow statement?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
13.What is the purpose of the Net Change in Cash section?
a) To show the total cash inflows
b) To display the beginning and ending cash balances
c) To calculate the change in cash over a period
d) To report net income
14. Where are proceeds from the sale of long-term assets reported?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
15. Which activity involves payments to suppliers and employees?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
STIE WIKARA CashFlows WA ol 2023
16. What is the formula for calculating ending cash balance?
a) Beginning Cash + Net Change in Cash
b) Beginning Cash - Net Change in Cash
c) Net Change in Cash - Beginning Cash
d) Net Change in Cash + Beginning Cash
17. In which section would the redemption of bonds be recorded?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
18. What does a negative cash flow from operating activities suggest?
a) The company is profitable
b) The company is facing liquidity issues
c) Cash inflows exceed cash outflows
d) The company is investing heavily
19.Where are changes in accounts receivable reported on the cash flow statement?
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) Net Change in Cash
20.Which financial statement provides information on cash and cash equivalents at a specific
point in time?
a) Income Statement
b) Balance Sheet
c) Cash Flow Statement
d) Statement of Retained Earnings
