WC impact On Cash

Question 1

What is a cash flow statement?

Answer 1

A financial statement that shows the inflow and outflow of cash within a company.

Question 2

True or False: An increase in accounts receivable results in cash inflow.

Answer 2

False

Question 3

What happens to cash outflow when inventory increases?

Answer 3

Cash outflow increases.

Question 4

Fill in the blank: An increase in accounts payable results in ______.

Answer 4

Cash inflow.

Question 5

What does an increase in depreciation expense indicate for cash flow?

Answer 5

Cash inflow increases.

Question 6

True or False: A decrease in accrued expenses leads to cash outflow.

Answer 6

True

Question 7

What is the effect on cash flow when a company sells equipment?

Answer 7

Cash inflow increases.

Question 8

When cash paid to suppliers increases, what is the effect on cash outflow?

Answer 8

Cash outflow increases.

Question 9

What happens to cash flow when long-term debt is repaid?

Answer 9

Cash outflow increases.

Question 10

What does an increase in operating expenses do to cash flow?

Answer 10

Cash outflow increases.

Question 11

True or False: An increase in cash sales results in cash outflow.

Answer 11

False

Question 12

What is the impact on cash flow when investments in capital assets increase?

Answer 12

Cash outflow increases.

Question 13

Fill in the blank: A decrease in cash received from customers results in ______.

Answer 13

Cash outflow.

Question 14

What effect does an increase in interest income have on cash flow?

Answer 14

Cash inflow increases.

Question 15

When dividends are paid, what happens to cash flow?

Answer 15

Cash outflow increases.

Question 16

What is the effect of an increase in cash paid for taxes on cash flow?

Answer 16

Cash outflow increases.

Question 17

True or False: An increase in prepaid expenses results in cash inflow.

Answer 17

False

Question 18

What happens to cash flow when a company issues new shares?

Answer 18

Cash inflow increases.

Question 19

When cash is received from sale of assets, what is the impact on cash flow?

Answer 19

Cash inflow increases.

Question 20

Fill in the blank: An increase in cash received from loans results in ______.

Answer 20

Cash inflow.

Question 21

What is the effect on cash flow when accounts payable decreases?

Answer 21

Cash outflow increases.

Question 22

True or False: An increase in cash receipts from customers increases cash inflow.

Answer 22

True

Question 23

What happens to cash flow if operating profit increases?

Answer 23

Cash inflow increases.

Question 24

What is the effect of an increase in other operating cash inflows?

Answer 24

Cash inflow increases.

Question 25

Fill in the blank: A decrease in cash paid for operating expenses results in ______.

Answer 25

Cash inflow.

Question 26

What happens to cash flow when there is a decrease in cash paid for interest?

Answer 26

Cash inflow increases.

Question 27

True or False: An increase in short-term borrowings results in cash outflow.

Answer 27

False

Question 28

When cash payments for acquisitions increase, what is the effect on cash flow?

Answer 28

Cash outflow increases.

Question 29

What happens to cash flow when there is an increase in customer deposits?

Answer 29

Cash inflow increases.

Question 30

Fill in the blank: A decrease in cash paid to employees results in ______.

Answer 30

Cash inflow.

Question 31

Other items

Answer 31