Question 1

How is depreciation shown on the statement of cash flows?

Accepted Answer

A)   as cash outflow under operating activities
B)   as cash inflow under operating activities
C)   as cash outflow under investing activities
D)   as cash inflow under investing activitiesE) None of the above
F) All of the above

Question 2

Which of the following scenarios represents a cash inflow?

Accepted Answer

A)   Short-term deposits remain unchanged during the year.
B)   An RRSP account increases during the year.
C)   The furniture account increases during the year.
D)   The savings bonds account increases during the year.E) A) and C)
F) B) and C)

Question 3

The only financial statement that is required to do the statement of cash flows is the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 4

Match the words with the term.
-adjustments in non-cash working capital accounts

Accepted Answer

A)   profit for the year
B)   working capital
C)   financing activities
D)   non-current assets
E)   dividendsF) B) and D)
G) B) and C)

Question 5

Match the words with the term.
-statement of income

Accepted Answer

A)   financing activities
B)   dividends
C)   cash outflow
D)   investing activities
E)   income tax expenseF) B) and D)
G) C) and D)

Question 6

A reduction in a term deposit from one period to the next is considered a cash outflow.

Accepted Answer

A) True 
 B)False

Question 7

Match the words with the term.
-investing activities

Accepted Answer

A)   depreciation
B)   common shares
C)   accrued expenses
D)   gross profit
E)   non-current assetsF) A) and D)
G) C) and E)

Question 8

Match the words with the term.
-operating activities

Accepted Answer

A)   Dividends
B)   Depreciation
C)   Inventories
D)   Buildings
E)   SalariesF) A) and E)
G) All of the above

Question 9

Which of the following is shown in the statement of cash flows?

Accepted Answer

A)   Dividends paid are part of the operating activities in the statement of cash flows.
B)   Prepaid expenses are part of the financing activities in the statement of cash flows.
C)   The purchase of non-current assets is part of the operating activities in the statements of cash flows.
D)   Share capital transactions are part of the financing activities in the statement of cash flows.E) A) and C)
F) A) and B)

Question 10

Cash flow has to do with the determining whether a business is efficient.

Accepted Answer

A) True 
 B)False

Question 11

-Prepare Belair Inc.'s statement of cash flows

Accepted Answer

The answer of  
-Prepare Belair Inc.'s statement of cash...

Question 12

-Adjustments in non-cash working capital accounts is _________________________.

Accepted Answer

The answer of 
-Adjustments in non-cash working capital accounts is...

Question 13

Match the words with the term.
-statement of income

Accepted Answer

A)   Dividends
B)   Depreciation
C)   Inventories
D)   Buildings
E)   SalariesF) A) and B)
G) A) and C)

Question 14

Which of the following situations affects the statement of cash flows?

Accepted Answer

A)   decreases in long-term borrowings are an outflow of cash
B)   decreases in long-term borrowings increase cash
C)   increases in long-term borrowings are an investing activity
D)   changes in long-term borrowings are an operating activityE) B) and C)
F) C) and D)

Question 15

-The company increased its investing activities by ________________________.

Accepted Answer

The answer of 
-The company increased its investing activities by...

Question 16

Which of the following is shown as an investing activity in the statement of cash flows?

Accepted Answer

A)   the purchase of marketable securities
B)   the purchase of raw material inventory
C)   the purchase of equipment
D)   the sale of common sharesE) A) and B)
F) C) and D)

Question 17

An increase in a non-current asset account indicates a cash ______________________.

Accepted Answer

The answer of An increase in a non-current asset account...

Question 18

Based on the statement of cash flows format, paying salaries is considered a cash outflow.

Accepted Answer

A) True 
 B)False

Question 19

If depreciation expense is $38,000, how will it be shown on the statement of cash flows?

Accepted Answer

A)   Depreciation will not be shown in the statement of cash flows
B)   Depreciation will be shown in investing activities as an increase in cash of $ 38,000.
C)   Depreciation will be shown in financing activities as a decrease in cash of $ 38,000.
D)   Depreciation will be shown in operating activities as an increase in cash of $ 38,000.E) A) and B)
F) A) and C)

Question 20

Which of the following is a cash outflow?

Accepted Answer

The answer of Which of the following is a cash...

Exam 3: Statement of Cash Flows

The only financial statement that is required to do the statement of cash flows is the statement of financial position.

Correct AnswerverifiedShow Answer

Match the words with the term. -operating activities

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Which of the following is shown in the statement of cash flows?

Correct AnswerverifiedShow Answer

If depreciation expense is $38,000, how will it be shown on the statement of cash flows?

Correct AnswerverifiedShow Answer

Match the words with the term. -statement of income

Correct AnswerverifiedShow Answer

-Prepare Belair Inc.'s statement of cash flows

Correct AnswerverifiedShow Answer

Match the words with the term. -statement of income

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Which of the following scenarios represents a cash inflow?

Correct AnswerverifiedShow Answer

Cash flow has to do with the determining whether a business is efficient.

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Based on the statement of cash flows format, paying salaries is considered a cash outflow.

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Which of the following is shown as an investing activity in the statement of cash flows?

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Which of the following is a cash outflow?

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How is depreciation shown on the statement of cash flows?

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Match the words with the term. -investing activities

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A reduction in a term deposit from one period to the next is considered a cash outflow.

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An increase in a non-current asset account indicates a cash ______________________.

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-Adjustments in non-cash working capital accounts is _________________________.

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Match the words with the term. -adjustments in non-cash working capital accounts

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-The company increased its investing activities by ________________________.

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Which of the following situations affects the statement of cash flows?

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