Cash Flow Statement Flashcards
Which statement of cash flows is the depreciation expense from?
Operating activities
Which statement of cash flows is the interest paid from?
Operating activities
Which statement of cash flows is the purchase of fixed assets from?
Investing activities
Which statement of cash flows is interest received from?
Investing activities
Which statement of cash flows is dividends paid to shareholders from?
Financing activities
Which statement of cash flows is receipt of a loan from?
Financing activities
Proceeds from the sale of fixed assets and interest received are examples of which statement of cash flows?
Investing activities
How do trade debtors signify a cash inflow?
If they are lower at the end of the accounting period compared to the start
How to trade creditors signify a cash inflow?
If they are higher at the end of at the end of the accounting period compared to the start
How does stock signify a cash outflow?
Increase in stock
Do you add or subtract a decrease in creditors?
Subtract
Do you add or subtract a decrease in stock?
Add
Do you add or subtract a decrease in debtors?
Add
Do you add or subtract the loss on disposal of fixed assets?
Add
How does stock demonstrate a cash inflow?
Opening stock will be higher than closing stock in an accounting period
What is the primary purpose of the cash flow statement?
To reconcile the difference between profits and cash flows
How is a decrease in creditors reconciled to the cash flow statement?
Deducted from the cash flow statement
How is depreciation charged reconciled to the cash flow statement?
Added back to the cash flow statement
Will the proceeds of shares from an ordinary issue be an inflow or outflow?
Inflow
Which three charges have no effect on cash flow?
Credit purchases
Credit sales
Depreciation
