SUBJECT:FUNDAMENTALS OF ACCOUNTANCY BUSINESS AND MANAGEMENT 2 TOPIC:CASH FLOW STATEMENT(CFS)

At least 5 Easy questions can focus on Identifying the accounts that are under the different parts of the CFS. At least 5 Medium questions can focus on the difference between Direct and Indirect Approach and computation of each part of the CFS (operating, investing, financing). At least 5 Difficult questions can focus on computation of net change in cash for the year and preparation of the CFS. Sample questions: Easy: 1. Gain on sale of property and equipment is part of what activity in the CFS? Answer: noncash transaction but part of operating activity if indirect: Changes in I ng term liabilities is part of we it activity in the CFS? Answer: fina. cing / verage: Net income :part of which \\pproach in pr paring the CF " Answer: indi act The compan presented the following in on er to aid the a countant in preparing the CFS a. Net inco le: P200,000 b. Deprecia ion expense: F 25,000 c. Gain on : ale of property and equipmen P100,000 d. Decrease in trade and o' er receivables P 70,000 e. Purchase of property and equipment: P: 30,000 f. Payment of loan from be ik: P150,000 Compute for the cash genen ited/used in fir incing activities Answer: P15 : 000 net cash , sed in financingactivities [ ifficult: Based on the given above, compute for the net change in cash for the yea Answer:: (P1 5,000) net cha ge in cash : If ending bal nce of cash ac ount is P700,0 0, prepare the CFS for the yea . Suggested / iswer