Which of the following is NOT a category on the cash flow statement?

Cash flow from net income activities.

Cash flow from investing activities.

Cash flow from operating activities.

Cash flow from financing activities.

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Question 21 pts

Which of the following events would create an outflow of cash?

Selling goods on credit.

Issuing common shares.

Payment of a dividend.

Recognition of depreciation expense.

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Question 31 pts

Which of the following is not relevant to the recognition of revenue for the provision of services.

The amount of revenue can be reliably measured.

The significant risks and rewards of ownership of the goods have been transferred to the buyer.

The costs incurred or that will be incurred to complete the transaction an be reliably measured.

None of the other answers is correct. All are relevant to the recognition for the provision of services.

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Question 41 pts

Page 181 of the textbook includes an excerpt from Canadian Tire's notes to the financial statements explaining the company's policies on sales and warranty returns. How does the company account for sales and warranty returns?

They are estimated to be 2.5% of all sales revenues.

They are accounted for in the period in which warranty services are performed at the actual amount paid.

They are estimated and accrued based on historical returns.

They are accounted for in the period in which goods are returned at the actual amount refunded to customers.

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Question 51 pts

A telecommunications company may sell products (smart phones) and services (data access) together for one price. This is known as _______________ .

a contra revenue

bundling

double entry

confusing

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Question 61 pts

What information does a cash flow statement provide about a company?

It is useful in assessing managerial performance.

It is useful in assessing liquidity.

It is useful in assessing economic performance.

It is useful in assessing profitability.

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Question 71 pts

The financing activities section of a cash flow statement usually involves accounts classified as:

long-term liabilities and shareholders' equity.

long-term assets and long-term liabilities.

current assets and current liabilities.

current liabilities and long-term liabilities.

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Question 81 pts

Which of the following is not a common cash flow challenge?

A long cash-to-cash cycle.

Significant growth.

Inadequate financing.

None of the other answers is correct. All are common cash flow challenges.

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Question 91 pts

A company has positive cash flow from operations and negative cash flows in financing and investing. This company:

is a successful and mature company, which is downsizing and returning capital to shareholders or repaying debt.

a start-up company that is able to attract financing for growth or reorganisation.

is profitable, and would be a good investment.

is successful, with operating activities funding growth and the repayment of debt or payment of dividends.

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Question 101 pts

The investing activities section of a cash flow statement usually involves accounts classified as:

long-term liabilities.

long-term assets and shareholders' equity.

long-term assets.

current assets and long-term assets.