Page 180 - DMGT403_ACCOUNTING_FOR_MANAGERS

Unit 8: Cash Flow Statement

5. Cash flow statement analysis is an analysis of short span of analysis due to Notes
(a) Current assets position is only considered
(b) Super quick assets position only considered
(c) Working capital position is considered

(d) None of the above.
6. How cash flows are denominated in terms of both current assets and current liabilities?
(a) Increase in current assets and Decrease in current liabilities
(b) Decrease in current assets and Increase in current liabilities

(c) Increase in current assets and Increase in current liabilities
(d) Both (a) & (b).
7. 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.
8. 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).

9. Sale of the plant and machinery falls under the category of
(a) Non-current asset sale – cash in flow
(b) Current asset sale – cash out flow
(c) Non-current asset sale – cash out flow

(d) None of the above.
10. Which of the following cannot be included in financing cash flows?
(a) Payments of dividends
(b) Repayment of debt principal

(c) Sale or repurchase of the company's stock
(d) Proceeds from issuing shares.
11. Which of the following cannot be included in cash outflows?
(a) Operating and capital outlays

(b) Family living expenses
(c) Loan payments
(d) None of these.

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