Flow of the Fortune: A Cash Cruise Through the Cash Flow Statement!

11/06/202422/06/2023 by QG Finance

Are you ready to set sail on a cash cruise through the cash flow statement? If so, then you’re in luck because we’ve got just the quiz for you! Our “Flow of the Fortune” quiz is designed to test your knowledge of the cash flow statement and help you understand the ins and outs of this important financial document. Did you know that the cash flow statement is one of the three main financial statements used by businesses to track their financial performance? By taking our quiz, you’ll learn all about the different sections of the cash flow statement and how they work together to give you a complete picture of a company’s financial health. So what are you waiting for? Come aboard and test your cash flow knowledge today!

Flow of the Fortune: A Cash Cruise Through the Cash Flow Statement!

Single choice questions Quiz

Page 1 of 10

In financial accounting, a cash flow statement is designed to show what? The profitability of a company The company's cash inflows and outflows over a period of time The assets and liabilities of a company The equity structure of a company

Page 2 of 10

The cash flow statement is divided into how many sections? Two Three Four Five

Page 3 of 10

What does the 'Operating Activities' section of a cash flow statement include? Capital expenditures and divestitures Dividends paid and shares repurchased Cash flows from regular business operations Cash from issuing bonds or equity

Page 4 of 10

What would you find in the 'Investing Activities' section of a cash flow statement? The payment of dividends to shareholders The purchase or sale of assets, loans made to vendors, or receipts from loans Cash received from sales Cash spent on manufacturing goods

Page 5 of 10

The 'Financing Activities' section of a cash flow statement includes which of the following? Money spent on research and development Receipts from customers for goods sold Cash flows from issuing or repaying equity and debt Cash paid to suppliers for raw materials

Page 6 of 10

What does a positive cash flow from operating activities indicate? The company is profitable but may not have positive cash flow The company has more cash outflow than inflow The company's business operations are generating more cash than they are using The company is investing more in its business

Page 7 of 10

Depreciation and Amortization are found under which section in a cash flow statement? Operating activities Investing activities Financing activities They are not found on the cash flow statement

Page 8 of 10

Cash flow from operations is generally calculated using which two methods? Direct and Indirect Real and Nominal Cash and Accrual Gross and Net

Page 9 of 10

In the cash flow statement, a decrease in accounts payable would be reported under which section? Financing activities Investing activities Operating activities It would not be reported on the cash flow statement

Page 10 of 10

What does Free Cash Flow represent? The total amount of money a company has in its reserves The cash a company generates from its operations that is free to be distributed to investors The total amount of cash flow from all three sections of the cash flow statement The cash a company has left after paying all its expenses

DID YOU KNOW

– The cash flow statement is a financial statement that shows the inflow and outflow of cash in a business over a specific period of time. It is an important tool for investors and analysts to evaluate a company’s financial health.

– The cash flow statement is divided into three sections: operating activities, investing activities, and financing activities. The operating activities section shows the cash flow from the company’s core business operations, while the investing activities section shows the cash flow from buying or selling assets. The financing activities section shows the cash flow from raising or repaying debt, issuing or buying back stock, and paying dividends.

– The cash flow statement is different from the income statement, which shows a company’s revenue and expenses over a period of time. While the income statement is important for evaluating a company’s profitability, the cash flow statement is important for evaluating its liquidity and ability to pay its bills.

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