Help
Course Catalog > Stocks > 300
Stocks 303: Understanding the Statement of Cash Flow

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The statement of cash flow records inflows and outflows of cash as soon as income is earned or expenses incurred.
Choose wisely. There is only one correct answer.
False. It records income and expenses regardless of when they were earned or incurred.
2.
A firms production and sales cash flows are recorded in the _______ section of the statement of cash flow.
Choose wisely. There is only one correct answer.
Operating. The operating section includes inflows and outflows of money related to production and sales.
3.
In the operating activities section of the statement of cash flow, you will find information on stock dividends paid.
Choose wisely. There is only one correct answer.
False. The operating activities section of the statement of cash flow does not cover stock. It concerns itself only with cash flow related to production and sales.
4.
In which part of the statement of cash flow would you find debt issues recorded?
Choose wisely. There is only one correct answer.
Cash flows from financing activities. Debts are listed in this section.
5.
Which of the following is not included in the statement of cash flow?
Choose wisely. There is only one correct answer.
Managing activities. The statement of cash flow does not include this.
6.
On a companys statement of cash flow, the sale of property is recorded as a ______.
Choose wisely. There is only one correct answer.
Cash inflow. It generates incoming cash.