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Chapter 14

Quiz by Julie Morris

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10 questions
Show answers
  • Q1
    All are types of cash flow activities except
    operating
    financing
    investing
    profiting
    30s
  • Q2
    The statement of cash flows helps predict future cash flows by reporting past cash receipts and payments, which are good predictors of future cash flows.
    False
    True
    30s
  • Q3
    The purposes of the statement of cash flows are to
    evaluate management decisions
    predict future cash flows
    determine ability to pay debts and dividends
    All of the answers
    30s
  • Q4
    Operating activities are most closely related to
    current assets and current liabilities
    dividends and treasury stock
    long-term assets
    long-term liabilities
    30s
  • Q5
    Which item does not appear on a statement of cash flows prepared by the indirect method?
    net income
    gain on sale of land
    collections from customers
    depreciation expense
    30s
  • Q6
    Cash flow items must be categorized into one of four categories. Identify as operating (O), investing (I), financing (F), or non-cash (N). Cash purchase of merchandise inventory
    financing
    investing
    non-cash
    operating
    30s
  • Q7
    Cash flow items must be categorized into one of four categories. Identify as operating (O), investing (I), financing (F), or non-cash (N). Cash payment of dividends
    Financing
    Investing
    Non-cash
    Operating
    30s
  • Q8
    Cash flow items must be categorized into one of four categories. Identify each item as operating (O), investing (I), financing (F), or non-cash (N). Cash receipt from the collection of long-term notes receivable
    Financing
    Investing
    Operating
    Non-Cash
    30s
  • Q9
    Cash flow items must be categorized into one of four categories. Identify as operating (O), investing (I), financing (F), or non-cash (N). Purchase of equipment in exchange for notes payable
    Operating
    Financing
    Non-Cash
    Investing
    30s
  • Q10
    Reports on a business's cash receipts and cash payments for a specific period
    Statement of Cash Flows
    Statement of Retained Earnings
    Income Statement
    Balance Sheet
    30s

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