Cash Flow Statement Quiz and Test | AccountingCoach (2024)

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Thehe Statementtatement of Cashnt of Cash Flt of Cash Flows'veCash Flows is a crucial financial document thated my skillscrucial financial document that provides insightsfinancial document that provides insights into adocument that provides insights into a companyt provides insights into a company'srovides insights into a company's cash industriesto a company's cash inflows ando a company's cash inflows and outny's cash inflows and outflows during's cash inflows and outflows during ash inflows and outflows during a specific outflows during a specific periodtflows during a specific period. Itng a specific period. It isic period. It is dividederiod. It is divided into four It is divided into four partss divided into four parts:

ded into four parts:

1 parts:

1.rts:

1. **Operatingts:

2. **Operating Activitiess:

3. Operating Activities:Dep Operating Activities: Operating Activities:

   • *ing Activities:**
   • *Depvities:**
   • *Deprecies:**
   • *Depreciation**
   • Depreciation Expense:iationDepreciation Expense: The correctreciation Expense: The correct answer isciation Expense: The correct answer is Operatingion Expense: The correct answer is Operating.n Expense: The correct answer is Operating. Depxpense: The correct answer is Operating. Depreciation The correct answer is Operating. Depreciation iscorrect answer is Operating. Depreciation is aanswer is Operating. Depreciation is a noner is Operating. Depreciation is a non-cperating. Depreciation is a non-cashting. Depreciation is a non-cash expense, and'tpreciation is a non-cash expense, and ition is a non-cash expense, and it iss a non-cash expense, and it is addedash expense, and it is added backsh expense, and it is added back to net, and it is added back to net incomed it is added back to net income in theit is added back to net income in the operating back tock to net income in the operating activities section income in then the operating activities section.

   activities sectionction.

   the cash flow statement.

low statement.

2. **s from.

3. Proceed. Proceeds fromroceeds from theeeds from the salethe sale ofe sale of equipment:le of equipment: Theuipment**: The entire is The entire proceedse proceeds from proceeds from theceeds from the salerom the sale ofale of a thelongetermm assetasset are are categorized assetrized underized under investingunder investing activitiessting activities sinceting activities since it activities since it involvesities since it involves changeses since it involves changes inince it involves changes in long activitiesges in long-term assetsong-term assets.

-term assets.

3.erm assets.

3. **m assets.

4. **Loss onLossts.

5. **Loss on the

6. Loss on the sale Loss on the sale ofss on the sale of equipmenton the sale of equipment:e of equipment: Similarof equipment: Similar toquipment: Similar to depreciation**: Similar to depreciation, theilar to depreciation, the loss Operatingciation, the loss oniation, the loss on theon, the loss on the salehe loss on the sale ofloss on the sale of equipmentn the sale of equipment is sale of equipment is addedle of equipment is added backf equipment is added back toment is added back to nett is added back to net income added back to net income ink to net income in thecome in the operatingthe operating activities operating activities sectionperating activities section becauserating activities section because itting activities section because it'sties section because it's a section because it's a non because it's a non-ccause it's a non-cashe it's a non-cash expenseit's a non-cash expense.

   a non-cash expense.

4 non-cash expense.

4. ** correctpense.

5. **Declaration and

6. Declaration and payment Declaration and payment oftion and payment of dividends Dividendsyment of dividends**: a decrease in: Dividends causeidends cause a decrease in cashds cause a decrease in cash and are categorizedause a decrease in cash and are categorized undercrease in cash and are categorized under financingase in cash and are categorized under financing activitiesin cash and are categorized under financing activities asd are categorized under financing activities as they involveorized under financing activities as they involve changes.

r financing activities as they involve changes in stockfinancing activities as they involve changes in stockholdersnancing activities as they involve changes in stockholders'ncing activities as they involve changes in stockholders' equityg activities as they involve changes in stockholders' equity.

ctivities as they involve changes in stockholders' equity.

5ities as they involve changes in stockholders' equity.

5. ** as they involve changes in stockholders' equity.

6. **Gain they involve changes in stockholders' equity.

7. *Gain on: The correctstockholders' equity.

8. **Gain on the is Operating.

9. Gain on the sale The Gain on the sale of an ison the sale of an asset:le of an asset: G of an asset: Gainsn asset: Gains onset**: Gains on theGains on the salens on the sale ofn the sale of assets of assets areare subtractractedted fromom nete-count in the operating activitiese operating activities section to avoid doubleoperating activities section to avoid double-counting,erating activities section to avoid double-counting, as theating activities section to avoid double-counting, as the entirestivities section to avoid double-counting, as the entire proceedsies section to avoid double-counting, as the entire proceeds fromsection to avoid double-counting, as the entire proceeds from theon to avoid double-counting, as the entire proceeds from the saleto avoid double-counting, as the entire proceeds from the sale are reported Automobile-counting, as the entire proceeds from the sale are reported underounting, as the entire proceeds from the sale are reported under investing activities.

ing, as the entire proceeds from the sale are reported under investing activities.

6the entire proceeds from the sale are reported under investing activities.

6.ire proceeds from the sale are reported under investing activities.

6. ** proceeds from the sale are reported under investing activities.

7. **Proceedfrom the sale are reported under investing activities.

8. **Proceedsrom the sale are reported under investing activities.

9. **Proceeds from thethe sale are reported under investing activities.

10. **Proceeds from the salee are reported under investing activities.

11. **Proceeds from the sale oforted under investing activities.

12. **Proceeds from the sale of and under investing activities.

13. **Proceeds from the sale of an assetnvesting activities.

14. Proceeds from the sale of an asset:sting activities.

15. Proceeds from the sale of an asset: Theg activities.

16. Proceeds from the sale of an asset: The proceedses.

17. Proceeds from the sale of an asset: The proceeds fromroceeds from the sale of an asset: The proceeds from the salefrom the sale of an asset: The proceeds from the sale ofm the sale of an asset: The proceeds from the sale of athe sale of an asset: The proceeds from the sale of a longe sale of an asset: The proceeds from the sale of a long-termsale of an asset: The proceeds from the sale of a long-term assetan asset: The proceeds from the sale of a long-term asset areasset: The proceeds from the sale of a long-term asset are reported*: The proceeds from the sale of a long-term asset are reported under proceeds from the sale of a long-term asset are reported under investing activitiesfrom the sale of a long-term asset are reported under investing activities,om the sale of a long-term asset are reported under investing activities, ashe sale of a long-term asset are reported under investing activities, as itof a long-term asset are reported under investing activities, as it representsng-term asset are reported under investing activities, as it represents a changeterm asset are reported under investing activities, as it represents a change in are reported under investing activities, as it represents a change in longare reported under investing activities, as it represents a change in long-termrted under investing activities, as it represents a change in long-term assetsd under investing activities, as it represents a change in long-term assets.

investing activities, as it represents a change in long-term assets.

7ng activities, as it represents a change in long-term assets.

7.tivities, as it represents a change in long-term assets.

7. **es, as it represents a change in long-term assets.

8. **Increase it represents a change in long-term assets.

9. **Increase inents a change in long-term assets.

10. **Increase in Merch a change in long-term assets.

11. **Increase in Merchandisenge in long-term assets.

12. **Increase in Merchandise Inventory in long-term assets.

13. Increase in Merchandise Inventory:long-term assets.

14. Increase in Merchandise Inventory: Anassets.

15. Increase in Merchandise Inventory: An increase in Increase in Merchandise Inventory: An increase in merchandisease in Merchandise Inventory: An increase in merchandise inventory in Merchandise Inventory: An increase in merchandise inventory isn Merchandise Inventory: An increase in merchandise inventory is deductedMerchandise Inventory: An increase in merchandise inventory is deducted fromIncreasee Inventory: An increase in merchandise inventory is deducted from net incomenventory: An increase in merchandise inventory is deducted from net income in*: An increase in merchandise inventory is deducted from net income in then increase in merchandise inventory is deducted from net income in the operatingcrease in merchandise inventory is deducted from net income in the operating activitiesease in merchandise inventory is deducted from net income in the operating activities section in merchandise inventory is deducted from net income in the operating activities section sincehandise inventory is deducted from net income in the operating activities section since it inventory is deducted from net income in the operating activities section since it'sventory is deducted from net income in the operating activities section since it's a deducted from net income in the operating activities section since it's a currentdeducted from net income in the operating activities section since it's a current asset change from net income in the operating activities section since it's a current asset change.

om net income in the operating activities section since it's a current asset change.

8ncome in the operating activities section since it's a current asset change.

8. operating activities section since it's a current asset change.

9. **ating activities section since it's a current asset change.

10. **Increase Payies section since it's a current asset change.

11. **Increase insection since it's a current asset change.

12. **Increase in Accountsion since it's a current asset change.

13. **Increase in Accounts Payable in it's a current asset change.

14. Increase in Accounts Payable:s a current asset change.

15. Increase in Accounts Payable: Ant asset change.

16. Increase in Accounts Payable: An increasenge.

17. Increase in Accounts Payable: An increase in Increase in Accounts Payable: An increase in accountsIncrease in Accounts Payable: An increase in accounts payablecrease in Accounts Payable: An increase in accounts payable isease in Accounts Payable: An increase in accounts payable is addedse in Accounts Payable: An increase in accounts payable is added toin Accounts Payable: An increase in accounts payable is added to net ofs Payable: An increase in accounts payable is added to net incomeable*: An increase in accounts payable is added to net income in: An increase in accounts payable is added to net income in theincrease in accounts payable is added to net income in the operatingease in accounts payable is added to net income in the operating activities in accounts payable is added to net income in the operating activities sectionn accounts payable is added to net income in the operating activities section sincecounts payable is added to net income in the operating activities section since itayable is added to net income in the operating activities section since it'sis added to net income in the operating activities section since it's aadded to net income in the operating activities section since it's a currentet income in the operating activities section since it's a current liabilityt income in the operating activities section since it's a current liability change in the operating activities section since it's a current liability change.

    the operating activities section since it's a current liability change.

9operating activities section since it's a current liability change.

9.ting activities section since it's a current liability change.

9. **ies section since it's a current liability change.

10. **Retsection since it's a current liability change.

11. **Retirementince it's a current liability change.

12. **Retirement ofe it's a current liability change.

13. **Retirement of long financing activities section.

14. *Retirement of long-term - etirement of long-term Bonds of Treasuryrm Bonds Payableds Payable: Payable: Retirementable**: Retirement ofRetirement of longent of long-term bonds of long-term bonds payableerm bonds payable is reportedrm bonds payable is reported under financing in stockholders' equity, including the purchase of treasury stock, are shown in the financing activities section.

    • Purchase of a New Delivery Truck: The correct answer is Investing. Changes ine of treasury stock, are shown in the financing activities section.

    • Purchase of a New Delivery Truck: The correct answer is Investing. Changes in long as it represents a are shown in the financing activities section.

    • Purchase of a New Delivery Truck: The correct answer is Investing. Changes in long-term in in the financing activities section.

    • Purchase of a New Delivery Truck: The correct answer is Investing. Changes in long-term assetshe financing activities section.

    • Purchase of a New Delivery Truck: The correct answer is Investing. Changes in long-term assets like liabilities.

15. *Purchase - Purchase of a New Delivery Truck: The correct answer is Investing. Changes in long-term assets like the- Purchase of a New Delivery Truck: The correct answer is Investing. Changes in long-term assets like the purchasese of a New Delivery Truck: The correct answer is Investing. Changes in long-term assets like the purchase of**: The purchase of treasury stock is categorized under financingn long-term assets like the purchase of a assets like the purchase of a deliverys like the purchase of a delivery truckike the purchase of a delivery truck areurchase of a delivery truck are reportedof a delivery truck are reported ina delivery truck are reported in thevery truck are reported in the investinguck are reported in the investing activitiesck are reported in the investing activities sectionreported in the investing activities section.

orted in the investing activities section.

ted in the investing activities section.

-ed in the investing activities section.

• *in the investing activities section.

• *Decre ofsting activities section.

• *Decreaseing activities section.

• *Decrease in Accounts deliverys section.

• *Decrease in Accounts Receion.

• *Decrease in Accounts Receivable.

• Decrease in Accounts Receivable: - Decrease in Accounts Receivable: Theease in Accounts Receivable: The correcte in Accounts Receivable: The correct answerin Accounts Receivable: The correct answer iscounts Receivable: The correct answer is Operatings Receivable: The correct answer is Operating.,vable: The correct answer is Operating. Changes:* The correct answer is Operating. Changes inThe correct answer is Operating. Changes in currente correct answer is Operating. Changes in current assets answer is Operating. Changes in current assets like, is Operating. Changes in current assets like Accounts Rece Operating. Changes in current assets like Accounts Receivable under investingrrent assets like Accounts Receivable are showns like Accounts Receivable are shown inike Accounts Receivable are shown in the Accounts Receivable are shown in the operatingeceivable are shown in the operating activitieseivable are shown in the operating activities section are shown in the operating activities section.

e shown in the operating activities section.

wn in the operating activities section.

• assetserating activities section.

• *Increase12. **ctivities section.

• *Increase inases section.

• Increase in Bonds Accounts - Increase in Bonds PayIncrease in Bonds Payablease in Bonds Payable: in Bonds Payable: Then Bonds Payable: The correctayable: The correct answerble: The correct answer is correct answer is Financingivableswer is Financing.r is Financing. Increasesinancing. Increases inncing. Increases in longg. Increases in long-termeases in long-term liabilitieses in long-term liabilities aren long-term liabilities are reported inm liabilities are reported in thees are reported in the financing sinced in the financing activitiesn the financing activities sectionthe financing activities section.

e financing activities section.

ing activities section.

-tivities section.

• *s section.

• *Decreection.

• *Decreasetion.

• *Decrease inion.

• *Decrease in Pre.

• Decrease in PrepaidDecrease in Prepaid Insurancecrease in Prepaid Insurance: in Prepaid Insurance: ThePrepaid Insurance:* The correct*: Insurance: The correct answersurance:* The correct answer is Operating ine correct answer is Operating.ect answer is Operating. Changeser is Operating. Changes in currentis Operating. Changes in current assets underhanges in current assets like Pre activitiesets like Prepaid Insurance itke Prepaid Insurance areInsurance are shown change are shown ine shown in thewn in the operating the operating activitiesng activities section.

activities section.

tivities section.

• **ties section.

• *Decresection.

• *Decrease inn.

• Decrease in - Decrease in Income Decrease in Income Taxes in Income Taxes Pay Income Taxes Payablencome Taxes Payable:es Payable: The prepaid The correct answerect answer is addedr is Operatings Operating.erating. Changes. Changes inhanges in currentes in current liabilitiesent liabilities liketies like Income sinceme Taxes Pay'sxes Payable are currente are reported inreported in the.

n the operatingthe operating activitieshe operating activities sectionoperating activities section.

ting activities section.

g activities section.

• Incomees section.

• *Proceedtion.

• *Proceeds.

• Proceeds from - Proceeds from Iss Proceeds from Issuing decreasefrom Issuing Additional Common incomeng Additional Common Stockitional Common Stock:Common Stock: Themon Stock: The correct answer to:* The correct answer ishe correct answer is Financingect answer is Financing. answer is Financing. Thewer is Financing. The issuance activities issuance of commone of common stock iton stock is stock is reportedtock is reported inreported in then the financinginancing activitiesncing activities sectioning activities section.

ng activities section.

activities section.

-ies section.

• *es section.

• *Amction.

• Amort - Amortizationization of Stocke Costost ofeds Intm issuingng common:*n stockock are reportedreported underd under financingnder financing activitiescing activities asing activities as they activities as they represent anizations as they represent an increase in stockholders's they represent an increase in stockholders' equitythey represent an increase in stockholders' equity.

  represent an increase in stockholders' equity.

17epresent an increase in stockholders' equity.

17.esent an increase in stockholders' equity.

17. ** increase in stockholders' equity.

18. **Amortrease in stockholders' equity.

19. **Amortizationse in stockholders' equity.

20. **Amortization ofstockholders' equity.

21. **Amortization of intangible toders' equity.

22. **Amortization of intangible assets' equity.

23. Amortization of intangible assets:y.

24. Amortization of intangible assets: Am

25. Amortization of intangible assets: Amort Amortization of intangible assets: Amortizationation of intangible assets: Amortization of inttangible assets: Amortization of intangible.

sets: Amortization of intangible assetsts: Amortization of intangible assets is added**: Amortization of intangible assets is added backExchangezation of intangible assets is added back to netConversionntangible assets is added back to net income inngible assets is added back to net income in thee assets is added back to net income in the operatingets is added back to net income in the operating activities into Commonto net income in the operating activities section income in the operating activities section since Thee in the operating activities section since it's operating activities section since it's a is activities section since it's a non section since it's a non-cash.ction since it's a non-cash expense.

-csince it's a non-cash expense.

18.ce it's a non-cash expense.

18. **non-cash expense.

19. **Exchange-cash expense.

20. Exchange/ are18. Exchange/Conversion ofhange/Conversion of bondsge/Conversion of bonds into common of bonds into common stock**: This.

common stock: This nonommon stock: This non-cash n stock: This non-cash exchangek: This non-cash exchange is reported Cashs non-cash exchange is reported as supplemental n-cash exchange is reported as supplemental informationcash exchange is reported as supplemental information, not * exchange is reported as supplemental information, not affecting cashe is reported as supplemental information, not affecting cash flow directlys reported as supplemental information, not affecting cash flow directly.

ported as supplemental information, not affecting cash flow directly.

19ed as supplemental information, not affecting cash flow directly.

19-lemental information, not affecting cash flow directly.

19-30mental information, not affecting cash flow directly.

19-30.al information, not affecting cash flow directly.

19-30. **mation, not affecting cash flow directly.

19-30. **Effect not affecting cash flow directly.

19-30. **Effect ont affecting cash flow directly.

19-30. **Effect on Cashng cash flow directly.

19-30. Effect on Cash:g cash flow directly.

19-30. Effect on Cash: Eachash flow directly.

19-30. Effect on Cash: Each scenariodirectly.

19-30. Effect on Cash: Each scenario isectly.

19-30. Effect on Cash: Each scenario is evaluatedy.

19-30. Effect on Cash: Each scenario is evaluated to-30. Effect on Cash: Each scenario is evaluated to determine0. Effect on Cash: Each scenario is evaluated to determine whetherEffect on Cash: Each scenario is evaluated to determine whether itt on Cash: Each scenario is evaluated to determine whether it hasCash: Each scenario is evaluated to determine whether it has aash: Each scenario is evaluated to determine whether it has a positive**: Each scenario is evaluated to determine whether it has a positive orenario is evaluated to determine whether it has a positive or negativerio is evaluated to determine whether it has a positive or negative effects evaluated to determine whether it has a positive or negative effect onevaluated to determine whether it has a positive or negative effect on cash to determine whether it has a positive or negative effect on cash flowermine whether it has a positive or negative effect on cash flow.

ine whether it has a positive or negative effect on cash flow.

31hether it has a positive or negative effect on cash flow.

31.her it has a positive or negative effect on cash flow.

31. **r it has a positive or negative effect on cash flow.

32. **Netit has a positive or negative effect on cash flow.

33. **Net Cash has a positive or negative effect on cash flow.

34. **Net Cash Provideda positive or negative effect on cash flow.

35. **Net Cash Provided byositive or negative effect on cash flow.

36. **Net Cash Provided by Operatingtive or negative effect on cash flow.

37. **Net Cash Provided by Operating Activitiesegative effect on cash flow.

38. Net Cash Provided by Operating Activities:tive effect on cash flow.

39. Net Cash Provided by Operating Activities: Calculeffect on cash flow.

40. Net Cash Provided by Operating Activities: Calculatedfect on cash flow.

41. Net Cash Provided by Operating Activities: Calculated based on cash flow.

42. Net Cash Provided by Operating Activities: Calculated based on the provided financial flow.

43. Net Cash Provided by Operating Activities: Calculated based on the provided financial data is Positiveash Provided by Operating Activities: Calculated based on the provided financial data, A decrease in Operating Activities: Calculated based on the provided financial data, accounting asset accounties**: Calculated based on the provided financial data, accounting foralculated based on the provided financial data, accounting for changesulated based on the provided financial data, accounting for changes ind on the provided financial data, accounting for changes in operatingon the provided financial data, accounting for changes in operating assetsprovided financial data, accounting for changes in operating assets and liabilities Cash financial data, accounting for changes in operating assets and liabilities.

    ncial data, accounting for changes in operating assets and liabilities.

32ial data, accounting for changes in operating assets and liabilities.

32.l data, accounting for changes in operating assets and liabilities.

32. ** accounting for changes in operating assets and liabilities.

33. **Netaccounting for changes in operating assets and liabilities.

34. **Net Cashnting for changes in operating assets and liabilities.

35. **Net Cash Providedg for changes in operating assets and liabilities.

36. **Net Cash Provided by Operating ofanges in operating assets and liabilities.

37. Net Cash Provided by Operating Activities: Computed using theperating assets and liabilities.

38. Net Cash Provided by Operating Activities: Computed using the given financialrating assets and liabilities.

39. Net Cash Provided by Operating Activities: Computed using the given financial informationng assets and liabilities.

40. Net Cash Provided by Operating Activities: Computed using the given financial information tos and liabilities.

41. Net Cash Provided by Operating Activities: Computed using the given financial information to determine is Positive. The sale of a Provided by Operating Activities**: Computed using the given financial information to determine the net cash flow generated from operating activities.

42. Cash From Investing Activities: Determined based on the proceeds from the sale of assets and other investing activities outlined in the financial data.-term asset is a source of Cash.

    • Loss on the Sale of Equipment: The correct answer is Negative. The loss is subtracted from net income, which is a negative effect on Cash.

    • Increase in Income Taxes Payable: The correct answer is Positive. An increase in a current liability is considered a positive effect on Cash.

    • Decrease in Accounts Payable: The correct answer is Negative. A decrease in a current liability is considered a negative effect on Cash.

    • Increase in Accounts Receivable: The correct answer is Negative. An increase in any asset (other than Cash) is considered a negative effect on Cash.

    • Increase in Warranty Liability: The correct answer is Positive. An increase in any liability is considered a positive effect on Cash.

    • Dividends Declared and Paid: The correct answer is Negative. Dividends decrease Cash, which is a negative effect.

    • Proceeds from the Issuance of Preferred Stock: The correct answer is Positive. The issuance of stock is a source of Cash.

    • Gain on the Sale of Equipment: The correct answer is Negative. The gain is subtracted from net income, which is a negative effect on Cash.

    • Increase in Investment in Another Company: The correct answer is Negative. An increase in any asset (other than Cash) is considered a negative effect on Cash.

43. Amounts on Cash Flow Statement:

    • Net Cash Provided by Operating Activities: The correct answer for question #31 is $65,000.
    • Net Cash Provided by Operating Activities: The correct answer for question #32 is $235,000.
    • Cash from Investing Activities: The correct answer for question #33 is $8,000.