ACCA Statement of Cash Flows — practice questions
25 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice ACCA Statement of Cash Flows in the app →Under which section of the statement of cash flows is the purchase of equipment for cash reported?A company issues common stock for cash. In which section of the statement of cash flows does this appear?Which of the following is classified as a financing activity on the statement of cash flows?In the statement of cash flows, a transaction in which the Cash account is credited represents what?The indirect method of preparing the operating activities section of the statement of cash flows begins with wUnder the indirect method, how is depreciation expense treated in the operating activities section?Under the indirect method, a gain on sale of investments that is included in net income is treated how in the Under the indirect method, an increase in merchandise inventory during the year is treated how when reconcilinUnder the indirect method, a decrease in accounts receivable during the year is treated how?Under the indirect method, a decrease in wages payable (a current liability) during the year is treated how?A firm reports net income of $48,000, depreciation of $5,000, a $10,000 gain on sale of investments, and a $1,A company's net income is $48,000. Adjustments: depreciation +$5,000; gain on sale of investments ($10,000); lLand that cost $100,000 was sold at a $1,000 loss during the year. How much cash was received from the sale, aInvestments that cost $80,000 were sold at a $10,000 gain. What was the cash inflow from the sale?Equipment rose from $60,000 to $221,000 over the year and none was sold. What is the cash flow for equipment, Equipment ended the year at $221,000. The beginning balance was $60,000 and equipment costing $10,000 was soldCash dividends payable began the year at $8,000, dividends of $3,000 were declared, and the ending payable wasA firm reports investing inflows of $99,000 (land) and $90,000 (investments) and an outflow of $161,000 (equipFinancing activities show: cash from issuing common stock $20,000; cash to redeem bonds $50,000; cash dividendNet cash from operating activities is $46,000, from investing $28,000, and from financing ($36,000). BeginningSales were $174,000. Beginning accounts receivable was $58,000 and ending was $34,000. Under the direct methodBeginning inventory was $80,000, ending inventory $112,000, and cost of merchandise sold $94,000. What were inInventory purchases for the year were $126,000. Beginning accounts payable was $22,000 and ending was $29,000.Wages expense was $20,000. Beginning wages payable was $17,000 and ending was $14,000. Under the direct methodBoth the direct and indirect methods are used to prepare which part of the statement of cash flows, and do the