Analysis Intermediate: 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 is divided into three sections. Which of the following is not one of those sections?
Choose wisely. There is only one correct answer.
Cash flows from common stock issued. Common stocks do not have their own section.
2.
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.
3.
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.
4.
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.
5.
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.
6.
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.