Cash Flow Statements Trivia Questions! Quiz

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| By Whytranger
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Questions: 6 | Attempts: 2,533

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Cash Flow Statements Trivia Questions! Quiz - Quiz

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Questions and Answers
  • 1. 

    Debit means

    • A.

      Plus

    • B.

      Minus

    • C.

      Left

    • D.

      Right

    • E.

      Increase

    • F.

      Decrease

    Correct Answer
    C. Left
    Explanation
    In the case of assets, debits are "plus" but in the case of liabilities or shareholder's equity, debits are "minus." The word debit means only one thing: left.

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  • 2. 

    Debit means

    • A.

      Plus

    • B.

      Minus

    • C.

      Left

    • D.

      Right

    • E.

      Increase

    • F.

      Decrease

    Correct Answer
    C. Left
    Explanation
    In the case of assets, debits are "plus" but in the case of liabilities or shareholder's equity, debits are "minus." The word debit means only one thing: left.

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  • 3. 

    A financial statement includes all of the following items: operating activities, financial activities, and investing activities. What financial statement is this? 

    • A.

      Balance Sheet

    • B.

      Statement of Cash Flows

    • C.

      Income Statement

    • D.

      Statement of Retained Earnings

    Correct Answer
    B. Statement of Cash Flows
    Explanation
    The correct answer is Statement of Cash Flows. This financial statement includes the activities of a company's operating, financial, and investing activities. It provides information about the cash inflows and outflows during a specific period, allowing stakeholders to understand how the company generates and uses its cash. The Statement of Cash Flows helps assess the liquidity and financial health of a company.

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  • 4. 

    In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for 

    • A.

      Operating Activities

    • B.

      Borrowing Activities

    • C.

      Lending Activities

    • D.

      Financing Activities

    • E.

      Investing Activities

    Correct Answer
    A. Operating Activities
    Explanation
    Although principal repayment falls under Investing Activities, the interest received or paid falls under Operating Activities.

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  • 5. 

    In a statement of cash flows, which of the following items is reported as a cash outflow from financing activities: I. Payments to retire mortgage notes; II. Interest payments on mortgage notes; III. Dividend payments

    • A.

      I, II and III

    • B.

      II and III

    • C.

      I only

    • D.

      I and III

    Correct Answer
    D. I and III
    Explanation
    Financing activities include the issuance of stock, the payment of dividends and other distributions to owners, treasury stock transactions, the issuance of debt, and the repayment of debt obligations. The payment of the principal of a mortgage note and the payment of dividends are outflows from financing activities.

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  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 14, 2014
    Quiz Created by
    Whytranger
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