Page 128 - DCOM302_MANAGEMENT_ACCOUNTING

Unit 6: Cash Flow Statement

Decrease in stock 13,000 Bonds repaid 12,000 Notes
Cash from operations 18,240 Closing cash balance 15,600
60,200 60,200

Task Illustrate the impact of the changes taken place on the current assets and current

liabilities to the tune of cash flows determination of the fi rm.

Self Assessment

Choose the appropriate answer
9. Cash position at the opening and closing comprises of
(a) Cash in hand

(b) Cash at bank
(c) Both cash in hand and at bank
(d) None of the above.

10. Cash flow analysis superior than the fund flow analysis due to
(a) Shorter span of cash resources are considered

(b) Real cash flows only taken into consideration
(c) Opening and closing cash balances are only considered
(d) (a), (b) & (c).
11. Sale of the plant and machinery falls under the category of

(a) Non-current asset sale – cash in fl ow
(b) Current asset sale – cash out fl ow
(c) Non-current asset sale – cash out fl ow
(d) None of the above.

12. Which of the following cannot be included in fi nancing cash fl ows?
(a) Payments of dividends
(b) Repayment of debt principal
(c) Sale or repurchase of the company’s stock
(d) Proceeds from issuing shares.
13. Which of the following cannot be included in cash outfl ows?

(a) Operating and capital outlays
(b) Family living expenses
(c) Loan payments
(d) None of these.

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