Study questions BMAL 205

Which part of the statement of cash flows can use the indirect method of presentation?

• Financing
• operating
• financing
• All of the above

Total operating cash flows + total investing cash flows + total financing cash flows = _______________.

• income
• annual profits
• total change in cash
• cash flow

Which of the following is a section in a statement of cash flows?

• operating
• investing
• financing
• All of the above.

Which of the following is usually viewed as a good sign from the statement of cash flows?

• Negative net earnings
• Large positive cash flows from selling property and equipment
• Positive net operating cash flows
• Positive cash flows from long-term debts

Starbucks' statement of cash flows can be viewed as healthy.

• False
• True

We want operating cash flows to be __________ and always __________ every year.

• Positive and increasing
• Positive and decreasing
• Negative and increasing
• Negative and decreasing

Cash flows and profits are always consistent with each other.

• True
• False