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- IAS 7 – Statement of Cash Flows 0%
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Question 1 of 10
1. Question
Typhoon Inc. prepares it statement of cash flows using the indirect method. During the financial year, Typhoon sold machinery with a carrying value of €1,000,000 for €700,000. How should Typhoon report the transaction in its statement of cash flows?
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Question 2 of 10
2. Question
Alan Ltd. acquires a pallet wrapping machine from Pete Corp. for €20,000. The terms require Alan Ltd. to pay €5,000 down and finance the remaining €15,000.
On 1 July, 20X1, Alan Ltd. pays the €5,000 down and accepted delivery of the forklift. The company signed a finance agreement which requires it to pay €500 a month for 36 months, starting on 1 September 20X1.
What amount should Alan Ltd. report as an investing activity in its statement of cash flows for the year ended December 31, 20X1?
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Question 3 of 10
3. Question
Farmiva makes agricultural machinery and prepares its statement of cash flows using the direct method. The following information were extracted from it’s accounting records
Opening accounts payable €400,000 Closing accounts payable 325,000 Opening inventory 100,000 Closing inventory 150,000 Cost of goods sold 1,400,000 What amount should Farmiva report as cash paid to its supplier for purchases of inventory?
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Question 4 of 10
4. Question
Cultivax Inc. is preparing its Statement of Cash Flows for the year ended December 31 20X1 using the indirect method. The following information was extracted from its accounting records:
Decrease in accounts payable 27, 000 Increase in accrued interest payable 26,000 Interest paid 31,000 Proceeds from long-term debt 500, 000 Increase in vehicle lease payable 67,000 Payments on short term debt 99, 000 Purchase of government bonds 60,000 Based on this information, what amount should be reported as net cash provided from investing activities?
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Question 5 of 10
5. Question
Premier Investments Ltd. Buys and sells shares, bonds and other securities. The company reported net income of $467,000 for the year ended 30 June 20X3. The following information was extracted from its accounting records.
Depreciation expense €50,000 Gain on sale of shares 7,000 Goodwill impairment 22,000 Decrease in accounts receivable 78, 000 Increase in inventory 11,000 Decrease in trading securities 80,000 Increase in accounts payable 45,000 Increase in accounts payable 45,000 Decrease in taxes payable 34,000 Dividend paid 200,000 Dividend received 27,000 What should Twin House report as net cash provided by operating activities on the statement of cash flows, assuming that Twin House classifies the proceeds from the sale of the trading securities as an operating cash inflow?
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Question 6 of 10
6. Question
Rado Inc. reported cost of goods sold of €550,000 in its most recent financial statements.
The following changes also occurred during the period:
Inventory increase €120,000
Accounts payable decrease 30,000
The company prepares its statement of cash flows using the direct method. How much should it report as cash paid to suppliers?
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Question 7 of 10
7. Question
Jungle Sports Inc. reported cost of goods sold of €230,000 in its most recent financial statements.
The following changes also occurred during the period:
Inventory increase €40,000
Accounts payable increase 10,000
The company prepares its statement of cash flows using the direct method. How much should it report as cash paid to suppliers?
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Question 8 of 10
8. Question
Cultivax Inc. is preparing its Statement of Cash Flows for the year ended December 31 20X1 using the indirect method. The following information was extracted from its accounting records:
Decrease in accounts payable 27, 000 Increase in accrued interest payable 26,000 Interest paid 31,000 Proceeds from long-term debt 500, 000 Increase in vehicle lease payable 67,000 Payments on short term debt 99, 000 Purchase of bonds payable 60,000 Based on this information, what amount should be reported as net cash provided from financing activities?
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Question 9 of 10
9. Question
Which of the following would be considered investing activities in a Statement of Cash Flows?
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Question 10 of 10
10. Question
Which of the following could be considered investing activities in a company’s Statement of Cash Flows?
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