Page 247 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Cost and Management Accounting

Notes 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.
14. Which of the following is not a part to the Statement of Cash Flows (or Cash Flow
Statement)?
(a) Operating Activities
(b) Investors’ Activities
(c) Financing Activities

(d) Supplemental Activities.
15. Which of the following is not included under operating activities?
(a) Receipts from income
(b) Payment for a new investment

(c) Payment for expenses and employees
(d) Funding of debtors.
16. Which of the following is included under cash outfl ows?
(a) Buying new assets
(b) Money the business borrows

(c) Proceeds from selling an investment
(d) None of these.
17. Which of the following is not judged about by the cash fl ow statements?
(a) Profi tability

(b) Financial condition
(c) Financial management
(d) Movement of fund

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