8 Which of the following items would not appear in a statement of cash flows?

Depreciation expense.

Lease payments.

Dividends received.

Payment of wages.

9 In the current accounting period, sales (calculated on an accrual basis) are $180 000 and the cash received from sales is $215 000, therefore:

cash sales for the period were greater than credit sales.

credit sales that occurred in a previous period may have been paid for in the current period.

credit sales that occurred in the current period may not yet have been paid for.

10 The correct order of activities for the preparation of a statement of cash flows is:

cash flows from financing activities, cash flows from operating activities, cash flows from investing activities.

cash flows from investing activities, cash flows from financing activities, cash flows from operating activities.

cash flows from operating activities, cash flows from investing activities, cash flows from financing activities.

cash flows from investing activities, cash flows from operating activities, cash flows from financing activities.

none of the options are correct.

11 An entitys net cash flow from operating activities is important for users of the statement of cash flows because it:

indicates the entitys ability to generate cash.

represents the entitys cash flows from normal business operations.

indicates that the business is meeting its current obligations.

12 Which relationship between items in the statement of cash flows (CF) and items in the balance sheet (BS) is not correct?

Cash from investing activities (CF); Non-current assets (BS)

Cash from financing activities (CF); Non-current liabilities and equity (BS)

Cash from financing activities (CF); Non-current assets (BS)

Cash from operating activities (CF); Current assets and liabilities (BS)

all of the options listed are true.