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1 | |
The cash flow statement tells us
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| | A) | the financial position of the business at a point in time
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| | B) | how cash has been generated and used during an accounting period
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| | C) | how much profit the business has made during an accounting period
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| | D) | the forecast cash movements over a period of time
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2 | |
The cash flow statement is
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| | A) | covered in FRS (Financial Reporting Standard) 1
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| | B) | a legal requirement for all business entities
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| | C) | an alternative to the profit and loss account
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| | D) | an alternative to the balance sheet
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3 | |
The cash flow direct method calculates operating cash flow from
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| | A) | operating profit
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| | B) | analysis of all receipts and payments relating to operating activities
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| | C) | changes in working capital
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| | D) | analysis of the changes in cash and overdraft levels
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4 | |
The cash flow indirect method calculates operating cash flow from
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| | A) | operating profit and non-cash adjustments
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| | B) | operating profit less capital expenditure
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| | C) | operating profit and changes in working capital
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| | D) | operating profit and changes in working capital and non-cash adjustments
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5 | |
Questions 5 and 6 refer to the following diagram:  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::ch04a::/sites/dl/free/0077098250/66362/ch04a.gif','popWin', 'width=556,height=286,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">ch04a (50.0K)</a>]]>ch04a
What was the operating cash flow for 2001? |
| | A) | inflow 18,800 pounds
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| | B) | inflow 22,200 pounds
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| | C) | inflow 27,800 pounds
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| | D) | inflow 2,800 pounds
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6 | |
If the company's taxation charge in the profit and loss account was 7,000 pounds and it paid dividends of 1,000 pounds and corporation tax of 6,000 pounds during the year, what was the net cash flow for the year 2001? |
| | A) | inflow 1,800 pounds |
| | B) | inflow 11,800 pounds |
| | C) | inflow 2,800 pounds |
| | D) | inflow 10,800 pounds |
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7 | |
In the cash flow statement interest received appears within
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| | A) | operating cash flow
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| | B) | management of liquid resources
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| | C) | returns on investment and servicing of finance
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| | D) | financing
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8 | |
In the cash flow statement receipts from disposal of fixed assets appears within
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| | A) | acquisitions and disposals
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| | B) | capital expenditure and financial investment
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| | C) | returns on investment and servicing of finance
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| | D) | management of liquid resources
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9 | |
The note to the cash flow statement - analysis of changes in net debt shows |
| | A) | increases or decreases in amounts owed by trade debtors |
| | B) | changes in the levels of cash, overdrafts and loans |
| | C) | changes in working capital |
| | D) | changes in financing during the accounting period |
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10 | |
Cash flow is
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| | A) | linked only to the balance sheet
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| | B) | linked only to the profit and loss account
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| | C) | not linked to the balance sheet or profit and loss account
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| | D) | linked to the balance sheet and profit and loss account
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2003 A McGraw-Hill Online Learning Centre