Statement of cash flows

Multiple choice questions (MCQs)

A financial statement that shows the inflows and outflows of cash during a particular period of time is known as:

A statement of cash flows has:

Which of the following is not an operating cash flow?

Which of the following is not an investing cash flow?

Which of the following is not a financing activity:

Which of the following is not a non-cash investing and financing activity?

Significant non-cash investing and financing activities are reported in the:

The following data belongs to Care Company:

• Accounts receivable on December 31, 2016: $60,000
• Accounts receivable on December 31, 2017: $40,000
• Net credit sales during the year 2017: $200,000

Based on the above information, the net cash collected from customers by Care Company during the year 2017 is:

The following data belongs to Soft Company:

• Accounts receivable on December 31, 2016: $20,000
• Accounts receivable on December 31, 2017: $25,000
• Net credit sales during the year 2017: $100,000

Based on the above information, the total cash collected from customers by Soft Company during the year 2017 is:

• Inventory on December 31, 2016: $5,000
• Inventory on December 31, 2017: $3,000
• Accounts payable on December 31, 2016: $12,000
• Accounts payable on December 31, 2017: $15,000
• Cost of goods sold for the year 2017: $50,000

Based on the above information, the net cash paid to suppliers of inventory during the year 2017 is:

Under indirect method of preparing statement of cash flows, depreciation expense affects:

A company sells an old piece of equipment for $5,000 cash. The book value of the equipment sold is $4,500. Under indirect method, the gain of $500 ($5,000 – $4,500) would affect:

A company sells old plant for $12,000 cash. The book value of the plant is $7,000. This transaction would affect:

The John Company sells its delivery truck in current year. The relevant information is given below:

• Cost of delivery truck (purchased several years ago): $25,000
• Book value of delivery truck: $5,000
• Proceeds from sale of delivery truck: $4,000

Based on the above information, the operating activities section of the statement of cash flows of current year would be affected by:

Which of the following items affects net income but does not affect cash?

The indirect method of preparing a statement of cash flows is also known as:

The following information belongs to Noor Merchandising Company:

• Net income: $25,000
• Depreciation expenses: $2,000
• Loss on sale of equipment: $100
• Proceeds from sale of equipment: $500
• Increase in accounts receivable: $1,000
• Increase in accounts payable: $2,000
• Decrease in inventory: $400

Based on the above information, the net cash provided by operating activities is:

The statement of cash flows is designed with the purpose of helping users to assess each of the following, except:

The Northern Company reported income tax expense of $30,500 on its income statement for the year December 31, 2017. The comparative balance sheet of the company showed that income tax payable on December 31, 2016 and December 31, 2017 was $4,000 and $6,500 respectively.

Based on the above information, cash payment for the income tax during the year 2017 was:

The land account was debited by $60,000 and credited by $25000 during the current year. The income statement reported a loss on sale of land in the amount of $2,000. All transactions related to land account was cash transactions. These transactions would be shown in the statement of cash flows as: