Question 1
If the opening balance of equity is $45,000, the closing balance is $60,000 and profit is $27,000, calculate the amount of dividends paid which will appear as a financing outflow in the statement of cash flows. Answer Selected Answer: Correct Answer: $12,000.
Question 2
If 'other expenses' in the profit and loss report is $32,000 including $8,000 of depreciation, accrued 'other expenses' at the beginning of the year is $1 ,OHO and O at the end of the year, the figure for 'other expenses' that will appear in the statement f cash flows for the year is: Answer $25,000.
Question 3
Which of these factors could cause operating profit to be more than cash flow from operations? Answer Both A and B.
Question 4
If credit sales for the year are $120,000 and the accounts receivable balance has increased by $10,500 over the year how much cas
...h was received from accounts receivable during the year? Answer $10,500. $109,500.
Question 5
Which item would not be included in the operating section of a statement of cash flows? Answer Cash received from the sale of surplus machinery.
Question 6
In the reconciliation attached to the statement of cash flows operating cash flow is reconciled to: Answer operating profit after tax.
Question 7
In a healthy business cash flow from operations will normally be: Answer positive.
Question 8
Company F received $20,000 in cash in repayment of a loan made to L Lee. In the statement of cash flows of Company F the $20,000 would appear as: Answer $4,000. $2,000.
Question 9
If $80,000 is owed by customers at the beginning of the year, $75,000 is owed at the ND and credit sales are $120,000, the cash received from customers is: Answer $115,000.
125,000.
Question 10
Wages expense in the income statement is $56,250 with the statement of financial position at the end of the year showing accrued wages of $2,000. If there were no accrued wages at the beginning of the period how much was paid out in cash for wages during the year? Answer $54,250.
Question 11
When preparing the note attached to the statement of cash flows reconciling operating profit with cash flow from operations which statement is not true? Answer All of the above are true.
An increase in current liabilities is deducted from profit.
Question 12
The purpose of the statement of cash flows is to provide information on: Answer cash inflows and outflows.
Question 13
The only tangible asset that is not depreciated is: Answer land.
Question 14
If the opening balance of rent accrued at the beginning of the year was $1,000, rent expense for the year was $20,000 and the closing balance of rent accrued at the end of the year was $1,200 the amount paid in cash for rent during the year is: Answer $19,800.
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