Quiz & Worksheet - Cash Flow Statement Patterns Interpretation

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

On a cash flow statement, which of the following categories would collections from customers be classified as?

Cash activities

Financing activities

Investing activities

Operating activities

Worksheet

Print Analyzing Cash Flow Statement Patterns Worksheet

1. If a company were acquiring long-term assets due to an expansion, in which category would cash be used?

Cash activities
Financing activities
Investing activities
Operating activities

2. Which of the following is the BEST description of cash provided by financing activities?

The business is being efficient in collecting money from its customers.
The business purchased some new long-term assets, such as machinery.
The business paid off a bank loan.
The business received a loan from the bank.

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About This Quiz & Worksheet

In this quiz, we've included a collection of multiple-choice questions designed to test your knowledge of analyzing the patterns in cash flow statements. Some of the subjects covered here include what the description of cash included in financial activities suggests and the portion of a cash flow statement that represents the main source of a company's cash.

Quiz & Worksheet Goals

Our quiz gives you a chance to test yourself on:

What collections from customers would be classified as on a cash flow statement
The category in which cash would be used if a company were acquiring long-term assets due to an expansion
What the description of cash provided by financial activities suggests
The component of a cash flow statement that represents the main source of a company's cash
What financing activities are

Skills Practiced

Reading comprehension - ensure that you draw the most important information from the related lesson about the analysis of patterns in cash flow statements
Knowledge application - use your knowledge to answer questions about the classification of collections from customers on a cash flow statement
Interpreting information - verify that you can read information regarding financing activities and interpret it correctly

Additional Learning

If you'd like to study this subject in greater detail, our lesson called Analyzing Cash Flow Statement Patterns is a helpful way to do so. After reviewing this lesson, you should be ready to:

Explain what a balance sheet shows
Differentiate between assets and liabilities
Identify a situation represented on the cash flow statement that may indicate a company is stockpiling cash for a potential acquisition

Practice Exams

Final Exam