Question

The operating activities section of the Cash Flow statement is related to which sections of the Balance Sheet?

a.Current assets and current liabilities

b.Long-term assets

c.Equity and liabilities

d.Equity and long-term liabilities

Which section of the Cash Flow Statement would include dividend payments?

a. Operating activities

b. Investing activities

c. Financing activities

d. Dividend payments are not shown on the Cash Flow Statement.

Which section of the Cash Flow Statement would include losses on the sale of furniture?

a. Operating activities

b. Investing activities

c. Financing activities

d. Losses are not shown on the Cash Flow Statement.

Which of the following would be shown as a deduction under operating activities on the Cash Flow Statement?

a. Depreciation expense

b. Increase in accounts payable

c. Increase in inventory

d. Decrease in accounts receivable

Which of the following would be shown as a deduction under financing activities on the Cash Flow Statement?

a. Issuance of long-term debt

b. Repayment of long-term debt

c Issuance of common stock

d. Payment of interest

Answer 1

Question 1
Option (A) is correct - current assets and current liabilities
The operating activities section of the Cash Flow statement is related
current assets and current liabilities in the balance sheet
Question 2
Option [C] - Financing Activities
Dividend Payments will be included in the Financing activities section
in the cash flow statement.
Question 3
Option [A] - Operating Activities
Loss on sale of assets / Furniture will be included in operating activities
in the cash flow statement
Question 4
Option [C] - Increase in Inventory
Increase in inventory means new purchases i.e., cash outflow
So it will be shown as a deduction in the operating activities section
in the cash flow statement
Question 5
Option [B] - Repayment of long term debt
Repayment of debt is a financing activity shown as a deduction in the
cash flow statement.