1. Which of the following would NOT be a non-cash item in the Income Statement:

a. Wages paid

b. Loss on Disposal of Machinery

c. None of these answers

d. Gain on Disposal of Machiney

e. Depreciation Expense

2. Computers at Cost on 1 January 2017 = $400

Computers at Cost on 31 December 2017 = $600

Accumulated Depreciation on Computers 1 January 2017 = $350

Accumulated Depreciation on Computers 31 December 2017= $490

Computers with $100 Accumulated Depreciation and a Cost of $250 are sold for $100

Required:

Suppose Net Income is $300 and there are no changes in Non-Cash Current Assets or Current Liabilities.

What is the Cash Flow to/from Operations for 2017?

a. $540

b. None of these answers

c. $440

d. $300

e. $340

3 .A statement of cash flow does NOT include which of the following as a major category:

Select one:

a. Financing Cash Flow

b. Other Comprehensive Cash Flow

c. Operating Cash Flow

d. Investing Cash Flow

4. Any major (i.e., material) non-cash transactions undertaken by the firm should be:

a. Disclosed only to the financial press and other media such as CNBC

b. Reported as a movement in cash

c. None of these answers

d. Considered irrelevant and ignored

e. Disclosed in the notes to the financial statements

5. Cash is defined as all Cash holdings plus marketable short-term securities with an expected maturity of:

a. None of these answers

b. Four months or more

c. 12 months or less

d. Three months or less

e. 6 month or less