Cash Flows & Disclosures Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Your company purchases a large piece of equipment. Which section of a cash flow statement will this affect?

Question 2 2. Which section of the cash flow statement changes depending on whether the direct or indirect method is used to prepare the statement?

Question 3 3. What source document would you use for the cash paid to employees section of a direct cash flow statement?

Question 4 4. Which method for creating a statement of cash flow do small businesses prefer using?

Question 5 5. What describes the indirect method of preparing a cash flow statement?

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Question 6 6. As the CFO of Acme Machinery, Kay is concerned that their cash flow is being impacted by the amount of money they are spending on expensive pieces of equipment. Should Kay look at their free cash flow or net cash flow, and why?

Question 7 7. You work as an accountant for a small business. The owner of the company has asked you to give her the operating cash flow for the company for the fiscal quarter that just ended. Upon review of the relevant documents, you determine that the company's earnings before taxes and interest for the quarter was $230,000, it depreciated $5,000 worth of equipment and has paid estimated taxes of $20,000. There was no amortization. What is the operating cash flow for the last quarter?

Question 8 8. What is the best explanation of cash flow?

Question 9 9. On which financial statement is cash flow reported?

Question 10 10. What's the difference between negative cash flow and positive cash flow?

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Question 11 11. What is the section of the statement of cash flows that includes activities that occur during the normal day-to-day operations of a company?

Question 12 12. ABC Ropes is interested in buying a retail store front to sell their ropes as they have previously only been selling online. ABC takes a loan from the bank in order to purchase a retail space outright. ABC receives a $250,000 loan from the bank to purchase their retail space. What is this $250,000 categorized as and what type of activity is it?

Question 13 13. The statement of cash flows is broken down into how many activities?

Question 14 14. Which of the sections of the statement of cash flows includes activities that involve cash receipts or cash payments from changes on long-term liabilities?

Question 15 15. What is the statement of cash flows?

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Question 16 16. Which of the following would be considered a non-cash investing activity?

Question 17 17. Which transaction must be disclosed at the bottom of the statement of cash flows?

Question 18 18. Non-cash investing and financing activities are disclosed:

Question 19 19. Which of the following should be disclosed at the bottom of the statement of cash flows?

Question 20 20. Which of these must be disclosed at the bottom of the statement of cash flows if the direct method is used?

Cash Flows & Disclosures Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 202: Intermediate Accounting II  /  Business Courses
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