mid term

Question 1

Provides an analysis of inflows and/or outflows of cash from/to
operating, investing and financing activities.

Answer 1

CASH FLOW STATEMENT

Question 2

Activities that are directly related to the main revenue-producing

Answer 2

Operating activities

Question 3

– Cash transactions related to purchase or sale of non-current assets.

Answer 3

Investing Activities

Question 4

Cash transactions related to changes in equity and borrowings.

Answer 4

Financing Activities

Question 5

The operating cash flow section of the CFS under the ____ method would show each
major class of gross cash receipts and gross cash payments.

Answer 5

Direct

Question 6

The operating cash flow section of the CFS under the _____ method will reconcile
the net income/loss of the company with the total cash flows generated/used in operating
activities by adjusting the net income/loss for effects of non-cash transactions.

Answer 6

Indirect

Question 7

The balance of the cash account at the beginning of the
accounting period

Answer 7

Beginning Cash Balance

Question 8

The balance of the cash account at the end of the accounting period
computed using the beginning balance plus the net change in cash for the current period.

Answer 8

Ending Cash Balance –

Question 9

Why is cash flow important?

Answer 9

Provides net change in the cash balance of a company for a period