Cash Flow Statements Trivia Questions! 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. LeftExplanation
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.Rate this question:
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- 2.
Debit means
- A.
Plus
- B.
Minus
- C.
Left
- D.
Right
- E.
Increase
- F.
Decrease
Correct Answer
C. LeftExplanation
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.Rate this question:
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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 FlowsExplanation
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.Rate this question:
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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 ActivitiesExplanation
Although principal repayment falls under Investing Activities, the interest received or paid falls under Operating Activities.Rate this question:
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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 IIIExplanation
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.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
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Dec 14, 2014Quiz Created by
Whytranger
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