1. Identify the item that would reduce the cash balances of a business and not reduce the profit for the year.

Select one:

a. Interest paid

b. Dividends paid

c. Distribution costs

d. Wages paid

2.Identify the item that would reduce the cash balances of a business and not reduce the profit for the year.

Select one:

a. Interest paid

b. Dividends paid

c. Distribution costs

d. Wages paid

3.The cash flow from investing activities shows the cash effects of which of the following?

Select one:

a. Income statement items

b. Long term liability and long term assets

c. Long term assets item s Correct

d. Long term liability & stockholders equity

4. Identify the transaction that will increase the bank balance of a company.

Select one:

a. Taking longer to pay suppliers.

b. Repaying a loan.

c. Increasing the inventory levels held.

d. Paying suppliers more promptly.

5. Which item does not form part of the shareholders' equity of a company on the statement of financial position?

Select one:

a. Ordinary share capital.

b. Share premium.

c. Retained profits.

d. Trade payables.