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.
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.
2.
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.
3.
Why is the statement of cash flow important to investors?
Choose wisely. There is only one correct answer.
It helps investors determine the financial well-being of companies. The statement of cash flow does not make recommendations, nor can it provide actual data on the future.
4.
An income statement records only cash received.
Choose wisely. There is only one correct answer.
False. It records revenue even when the revenue has not been received.
5.
The operating activities section of the statement of cash flow covers cash flows associated with _______.
Choose wisely. There is only one correct answer.
Production and sales. It concerns itself with the cash flows of making and selling the companys products or services.
6.
The investing activities section of the statement of cash flow records the buying of machinery.
Choose wisely. There is only one correct answer.
True. Buying equipment is considered an investment activity by a corporation.