Question
Module 2 Quiz 1 - Cash Flow Statement Total points 8 1. Question 1 Which of the following activities would affect the OPERATING section of
Module 2 Quiz 1 - Cash Flow Statement
Total points 8
1.
Question 1
Which of the following activities would affect the OPERATING section of the cash flow statement this year? (Check all that apply)
1 point
Selling some products for cash
Paying back debt
Buying a machine on credit
Issuing shares of stock
Buying inventory for cash
2.
Question 2
Which of the following activities would affect the INVESTING section of the cash flow statement this year? (Check all that apply)
1 point
Buying back some of your own shares
Depreciating a long-term asset
Spending cash on R&D
Buying a machine for cash
Paying a dividend
3.
Question 3
Which of the following activities would affect the FINANCING section of the cash flow statement? (Check all that apply)
1 point
Buying another company for cash
Receive cash from selling a product
Paying your income taxes
Issuing long-term debt
Paying a dividend
4.
Question 4
Which of the following would likely be true about the cash flow statement of a startup company? (Check all that apply)
1 point
It pays a lot of dividends
Its financing cash flows are positive
Its operating cash flow is insufficient to cover its investing cash flows
Its operating cash flow is highly positive
5.
Question 5
Suppose a firm recognizes sales revenue of $100 on its income statement for a period. Of this amount, $80 was for cash and $20 was on credit. What is the overall impact on the operating section of this information? (Ignore the cost side of the sale)
1 point
Cash from Operations goes up by 80
Cash from Operations goes down by 20
Cash from Operations goes up by 100
Cash from Operations goes up by 20
6.
Question 6
Suppose a firm recognizes sales revenue of $200 on its income statement for a period. Of this amount, $150 was for cash and $50 was on credit. How would this be shown on a cash flow statement that uses the INDIRECT method? (Ignore the cost side of things)
1 point
Net Income is $150 and there is an adjustment downward of $50 related to receivables
Net Income is $200 and there is an adjustment downward of $150 related to receivables
Net Income is $150 and there are no adjustments necessary on the cash flow statement
Net Income is $200 and there is an adjustment downward of $50 related to receivables
7.
Question 7
Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a positive adjustment in the operating section of $1000 for Depreciation. Which of the following are correct interpretations of this? (Check all that apply)
1 point
Income was lower by $1000 because of Depreciation expense
The firm sold long-term assets for $1000
Depreciation provided cash of $1000
The firm invested $1000 of cash in long-term assets
8.
Question 8
Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 related to Accounts Payable. Which of the following are correct interpretations of this? (Check all that apply)
1 point
The firm paid $5000 more to suppliers than they had recorded as expense on the income statement this year
The firm received $5000 from customers this year
The firm paid $5000 to suppliers this year
The firm paid $5000 less to suppliers than they had recorded as expense on the income statement this year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started